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Identifying PUD's

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Lee SW IL

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I hate asking questions that I should know this, but I don't. :oops:

The 1004 and 2055 request PUD information. Where do I get this info? Would the county have this recorded as a PUD. Lady I talked with, was not able to tell me if my subject property is in a PUD.

I think, :? I have only one appraisal that was in a PUD, which was too long ago.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Lee: this comes straight out of a recent review I did...

~~~~~~~~
Fannie Mae Sec 302 states:
A planned unit development (PUD) is a project or subdivision that consists of common property and improvements that are owned and maintained by an owners' association for the benefit and use of the individual units within the project. For a project to qualify as a PUD, the owners' association must require automatic, nonseverable membership for each individual unit owner, and provide for mandatory assessments. Zoning should not be the basis for classifying a project as a PUD.
~~~~
Subject site zoning:
County on-line records do not clearly indicate subject zoning. A review of the city zoning map appears to indicate PUD, but may not be correct. City zoning officials stated that they "are pretty sure it is a PUD". Further inquiry brought no resolution: "Usually there is a little more description than that, it looks like the ordinance went from I-1 to PUD, but it doesn't say anything else, basicly it is PUD(R-1 Use Group) with single family use, even though it doesn't say that specifically".

Discussion with the Sales rep for the subdivision indicated that the only efect the PUD has on the area is that the setback minimums are tighter than would have been permitted in a standard single family residential neighborhood. No Homeowners association fees exist, nor is there any form for implementing HOA fees in the future. No other reasonable source(s) of data are available. The site description is otherwise consistent with the available public record and with the reviewer's street view site observations.
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Per the above cited FNMA regulation and further inquiry of the County Zoning Dept. it is my opinion that the subject should not be "classified as PUD" I assume at the space at the top of the URAR form: it does not meet the defined PUD criteria, regardless of the actual site zoning, because it does not have a HOA that requires assessments.

................
Thus how I handled this issue, no-body squawked at me later (yet) :roll: and only time will tell if I done good :wink:
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Lee:

In our area, a PUD is typically managed by a property management company. Our MLS office provides a book with some information including who the manager of the PUD is. If it is a new development, the sales office should be able to help. Lee Ann is right about the PUD zoning. We have several areas here that the zoning is PUD but none of the other criteria Lee Ann mention applies.
 

Tony Lehn

Junior Member
Joined
Oct 28, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
Lee,
I'll always ask the homeowner if they pay association dues. If theydo, I call it a PUD. That may be oversimplified, but I've never had a problem.
 

Rob Bodkin

Junior Member
Joined
Nov 9, 2002
Professional Status
Certified Residential Appraiser
State
Washington
Tony had a good suggestion, if they pay dues they would know.

Another clue would be in the legal. A p.u.d. legal would have some reference to a "common lot" or an undivided interest in another parcel.

Another place to look for clues would be in the MLS. Here locally the MLS will list dues paid. Sometimes the listing agent will not list them on the subject, but a comp from the same project will indicate a monthly dues amount.

Hope that helps.

Rob Bodkin
Freestone Partners
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
We have many HOA's that require dues payment but own no common ground, or even f they do (community pool being the most common type) and are still not classified as PUD.

I would want to be careful about calling something a PUD which is merely subject to HOA dues 8O .

County zoning records tend to be your best bet, pretty colored zoning maps are available in many jurisdictions, and a really good buy.
 

Phil Rice

Member
Joined
Apr 22, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
PUD stands for Planned Unit Development

If there are no dues, or dues are optional, it is not a PUD, don't be fooled by zoning.

If dues are mandatory, and there is any kind of common property (a pool), it is a PUD until proven otherwise.

If there are mandatory dues, what are they for? Trash collection, or some kind of service? Maybe the HOA is reponsible for landscape, exterior maintenance, snow removal, etc. In my experience, mandatory dues almost always means it is PUD.
 

Tony Lehn

Junior Member
Joined
Oct 28, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
Lee Ann,

If I based my decision on zoning, at least here in Indy and the surrounding area, I would not classify anything as PUD. I've only that zoning once in the entire region.

Everything around here, that has a mandatory fee attached, has an HOA, and has common areas, that are maintained by the entire HOA. This is very common in new subdivisions, which are popping up all over this area.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
If there is a mandatory HOA with dues it is considered a PUD for mortgage lending purposes. Consider the following:

1. It can be zoned single family residential, no reference to the HOA in the public records BUT there is a HOA with MANDATORY dues. It is a PUD.

2. There are no common elements....but MANDATORY dues...it is a PUD.

3. It is zoned PUD, there is no HOA and no dues....it is a PUD.

Asking the owner if they pay dues is a very good way to find out if there is an HOA. Some MLS listings will show HOA dues and management companies (our's does).

This is one big pain in the arse for the appraiser. You should check each and every property to see if there is a HOA. Now, do you know why this is such a big deal? The HOA can lien the property for non-payment of dues and it has priority. The HOA can foreclose ahead of the first mortgage holder in the event of non-payment. Very powerful stuff.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Thanks Mike, I wasn't aware of that info B4.
 
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