How do you identify a PUD

[Mr Rex]

Also, from another thread...


Does anyone else see the mandatory HOA dues as ONE of the tests for PUD.

It seems there are two parts, 1..the mandatory dues and 2..a project or subdivision that consists of common property and improvements that are owned and maintained by the HOA for the benifit and use of the individual PUD units.

It would seem that JUST the mandatory dues does not automatically make it a PUD, you also need the common property, no?

You mean like the sign at the entrance to the subdivision?

 

[Mile High Trout]

This is probably my most reposted help link ever. This question rolls around every few months, and has for years.

http://www.mortgage-underwriters.org/mortgage-underwriting-news/2010/08/13/what-makes-pud-real-pud

 

[Vermonter]

Also, from another thread...


Does anyone else see the mandatory HOA dues as ONE of the tests for PUD.

It seems there are two parts, 1..the mandatory dues and 2..a project or subdivision that consists of common property and improvements that are owned and maintained by the HOA for the benifit and use of the individual PUD units.

It would seem that JUST the mandatory dues does not automatically make it a PUD, you also need the common property, no?

Not necessarily. There can be no common property, just common deed restrictions.

 

[Gregory Beck]

Also, from another thread...
It would seem that JUST the mandatory dues does not automatically make it a PUD, you also need the common property, no?

Wrong if money is being paid it's obviously for common property there is always something. An entrance area being maintained could be one, card gate, guard gate, community pool etc etc

 

[ctapraser]

Wrong if money is being paid it's obviously for common property there is always something. An entrance area being maintained could be one, card gate, guard gate, community pool etc etc

My bold,

This is wrong, as are most absolutes. I have appraised properties with a mandatory HOA and no common area.

To base the type of "ownership" you have solely on if you pay mandatory dues is not correct. In CT you can have a PUD, condo or SFD in a sub division with mandatory dues.

 

[Peter LeQuire]

Fannie Mae defines a PUD as follows:

Planned Unit Development (PUD) – General Definition.A real estate project in which each unit owner has title to a residential lot and building and a nonexclusive easement on the common areas of the project (for example, a clubhouse, pool, playground, entrance/exit, etc). The owner may also have an exclusive easement over some parts of the common areas (for example, a parking space). (See, FNMA Seller/Servicer Guide, Chapter 3, Glossary).
Planned Unit Development (PUD) – Specific Requirements for Classification as a PUD.(See, FNMA Seller/Servicer Guide, Chapter 2, Section B4-2.3-01) A Planned Unit Development (PUD) is a project or subdivision that consists of common property and improvements that are owned and maintained by a homeowner’s association for the benefit and use of the individual PUD units. In order for a project to qualify as a PUD, the following elements must be met:
There is common property for the project; and
Each unit owner’s membership interest in the homeowner’s association must be automatic and non-severable; and
The payment of assessments related to the units must be mandatory; and
The project must not be a Condominium.

A lot of lenders and underwriters have different ideas of what defines a PUD. Its probably the single biggest source of back and forth tags I deal with.

Seems pretty straightforward, to me.

 

[residentialguy]

This is wrong, as are most absolutes.

Is that absolutely true?

 

[ctapraser]

Is that absolutely true?

....

 

[Debra]

This thread is helpful.

 

[Gregory Beck]

Usually the way I determine of a property is legally a PUD is checking the the deed, which says "A Planned Unit Development"....what method do you use?

Reason for asking, lender is saying its a PUD, deed doesnt refer to it as a PUD, but I pulled the subdivision plan, which indicates "P.R.U.D."...which i assume is planned res unit development(?)

Thanks

If There is any HOA fee it is a PUD