We need to know the basic facts concerning planning top and bottom limits including any critical levels or the threshold over which the cost would be much higher for land development. Therefore this paper concerned with Baghdad Municipality decision No.2/1004 dated 7/12/2004. The reason behind this decision is the hope to face up at least in the severe housing crisis in the city of Baghdad. This paper attempts to know the attitude of the local community in the general through a field study of people living near such dwelling where third floors are added of. This might indicate any positive or negative effects whether on short or long-term including its effect on the theoretical side including the population growth of Baghdad, the urban land, the housing needs, population density, estimation of the land assigned for housing in the current Master plan in addition to housing finance and infrastructure and how this is related to allowing on additional third floors. The results of the study included some positive points in the eyes of the local community but with some reservation concerning the neighboring dwelling and the future of the urban fabric particularly the traditional neighborhoods. Therefore thus is a need to review the concerned B.M, decision especially in the traditional neighborhoods of the city as well as in the areas of high living densities, There is also a need to increase the Estate Bank housing loach as it is an important factor in housing production