Is this a PUD?

[CB27]

Looking for opinions on this - this house is in a 55+ community which requires a $344 per person, per year paid to the Community Association for use/maintenance of the recreation facilities (clubhouses, pools, tennis courts, etc). The Community Association specifically states that it is not an HOA. There is no other fee beyond that. Would you say this is a PUD or no?

Sun City Center, FL for those who may have dealt with this before.

 

[Dublin ohio]

Here is what Fannie says. If they are charging per person. How do they enforce it

PUD Project Requirements​

For a project to qualify as a PUD, all of the following requirements must be met:

• each unit owner’s membership in the HOA must be automatic and nonseverable,
• the payment of assessments related to the unit must be mandatory,
• common property and improvements must be owned and maintained by an HOA for the benefit and use of the unit owners, and
• the subject unit must not be legally created as part of a condo or co-op project.

Zoning is not a basis for classifying a project or subdivision as a PUD. Units in projects or subdivisions simply zoned as PUDs that include the following characteristics are not defined as PUD projects under Fannie Mae’s policies. These projects

• have no common property and improvements,
• do not require the establishment of and membership in an HOA, and
• do not require the payment of assessments.

Fannie Mae classifies PUD projects as either

• Type E—established PUD projects in which the developer has turned over voting control of the HOA to the unit purchasers.
• Type F—new PUD projects in which the developer has not turned over voting control of the HOA to the unit purchasers.

Certain PUD projects require submission to PERS. See B4-2.2-06, Project Eligibility Review Service (PERS) for additional information

 

[CB27]

Here is what Fannie says. If they are charging per person. How do they enforce it

PUD Project Requirements​

For a project to qualify as a PUD, all of the following requirements must be met:

• each unit owner’s membership in the HOA must be automatic and nonseverable,
• the payment of assessments related to the unit must be mandatory,
• common property and improvements must be owned and maintained by an HOA for the benefit and use of the unit owners, and
• the subject unit must not be legally created as part of a condo or co-op project.

Zoning is not a basis for classifying a project or subdivision as a PUD. Units in projects or subdivisions simply zoned as PUDs that include the following characteristics are not defined as PUD projects under Fannie Mae’s policies. These projects

• have no common property and improvements,
• do not require the establishment of and membership in an HOA, and
• do not require the payment of assessments.

Fannie Mae classifies PUD projects as either

• Type E—established PUD projects in which the developer has turned over voting control of the HOA to the unit purchasers.
• Type F—new PUD projects in which the developer has not turned over voting control of the HOA to the unit purchasers.

Certain PUD projects require submission to PERS. See B4-2.2-06, Project Eligibility Review Service (PERS) for additional information

Yeah I know what FNMA says, but you'd say this is a little strange, grey area, right?

From what I can tell, you have to tell them how many people live there (can't exceed 2 memberships per house). So either when you buy or if someone new moves in or if someone new rents. The Community Association can put a lien on the house if the dues aren't paid, so maybe that would favor being a PUD?

 

[Surf Cat]

It's an Active Adult Community. Very sparse and low maintenance common elements and green belts...bare bones just need a path to get to the pool for the old codgers....no lush, zen like greenbelts. Hence, the low maintenance fee ($344 ÷ 12 = $28.67 per month).

What's different in your case is the "per person, per year paid to the Community Association for use/maintenance of the recreation facilities" fee.... which acts as an HOA.....but they're saying it's not.

By all indicators, this would be a PUD. That said, what does the property profile state under the legal description? Over here in my neck of the woods in California, the plat map indicates the development's legal status per the zoning. What does the zoning and plat map state that it is?

 

[Tom D]

It is a pud with a small yearly fee. To much trouble to do monthly fee. Who owns the recreation facilities, the owners, the original developer, or some community for profit thingy. Can't imagine the deed's legal with all those recreations measurements flowing around separately.

Normally, the title company somehow knows, ask for the title.

 

[Mike Ault]

The Community Association can put a lien on the house if the dues aren't paid, so maybe that would favor being a PUD?

Fannie Mae doesn't care what anybody else thinks about PUD/Not PUD. They care about anything that interferes with their first lien status and you nailed the decision tree branch above. That loan will require a PUD Rider in the file.

 

[chad hampton]

yes

 

[CB27]

What's different in your case is the "per person, per year paid to the Community Association for use/maintenance of the recreation facilities" fee.... which acts as an HOA.....but they're saying it's not.

Within their docs on the website they cite how Florida legally defines an HOA, which is why they say they aren't - part of which is that they only manage the rec facilities, but are not responsible for the operation of a community. But again, FNMA could look at that differently than Florida.

 

[CB27]

Appreciate everyone's feedback. I was already pretty leaning towards it being a PUD, but obvious a little different situation than the norm.

 

[Fernando]

Just look at the Prelim. If it indicates PUD, it's in a PUD. Simple.