A heating, ventilation, and air conditioning (“HVAC”) system and a method for controlling the HVAC system. The HVAC system includes a compressor and a variable speed discharge fan. The method includes determining, with a controller, a low fan capacity setting based on an operation of the compressor. The method also includes maintaining a discharge fan capacity at the low fan capacity setting, and varying a coil discharge air temperature between a low discharge air temperature limit and a high discharge air temperature limit. The method further includes when the coil discharge air temperature reaches the low discharge air temperature limit, varying the discharge fan capacity between the low fan capacity setting and a high fan capacity setting so as to maintain a space temperature at a space temperature setpoint, while maintaining the coil discharge air temperature at the low discharge air temperature limit.