YFA72
Freshman Member
- Joined
- Jul 4, 2010
- Professional Status
- Certified Residential Appraiser
- State
- Florida
This suggests that an appraiser should require a 'legal opinion' from an attorney or a Title Company before reporting the "PUD' status of the subject (and comps).
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'PUD' STATUS = UNDETERMINED
Home-owners in the subject development pay a mandatory, monthly HOA fee.
GSE requirements for a 'PUD'?
'Planned Unit Development' (PUD) definition:-
-A type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development.
Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).planned unit development (PUD)
-FROM The NEW FHA Handbook 4000.1 (CAPS/BOLD ADDED)
-A planned unit development (PUD) refers to a residential development that contains, within the overall boundaries of the subdivision, COMMON AREAS OWNED BY A HOMEOWNERS' ASSOCIATION to which all homeowners must belong and to which they must pay lien-supported assessments.
-It is beyond the skills and qualifications of an appraiser to assemble and review ownership documentation in order to determine if homeowners have or have not got ownership/control over the facilities/HOA or any other relevant entity.
-Incorrectly reporting/implying that a subject is a PUD (i.e. where the residents own/control those amenities), when, in fact, it is not, could be viewed as an egregious error or, worse, a deliberate falsification.
-According to GSE requirements, if the facilities/common grounds/amenities are not owned/controlled by the homeowners, the subject does not qualify as a PUD and cannot be reported as such.
"Contrary to popular belief, the zoning district of the property is irrelevant.
"In the context of the secondary market definition, a "PUD" could exist in any zoning district.
"The only way to determine whether or not a property is a PUD is by reviewing the covenants and restrictions which will disclose mandatory membership in the homeowners association.
-Monthly or annual HOA fees may or may not be involved.
"Both Fannie Mae and Freddie Mac consider property to be a PUD if the development has all of the following characteristics:
1. The individual unit owners own or have a leasehold interest in a parcel of land improved with a dwelling. This ownership is not in common with other unit owners.
2. The development is administered by a homeowners’ association that owns or has a leasehold interest in and is obligated to maintain property and improvements within the development. (i.e. greenbelts, recreation facilities, and parking areas) for the common use and benefit of the unit owners.)
3. The unit owners have an automatic, non-severable interest in the homeowners association and pay mandatory dues or assessments.
4. Zoning itself is not a basis for classifying a project or subdivision as a PUD.
-An appraiser is not qualified to offer a 'legal opinion' regarding the 'legal rights' of the home-owners.
-It is assumed that all property-owners have the same benefits.
-But, as is typical of this style of community, the residents have an obligation to pay, but the 'benefits' they are to receive, are not specified.
-APPRAISER IS NOT QUALIFIED TO DETERMINE PUD STATUS SUBJECT OR OFFER A LEGAL OPINION.
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'PUD' STATUS = UNDETERMINED
Home-owners in the subject development pay a mandatory, monthly HOA fee.
GSE requirements for a 'PUD'?
'Planned Unit Development' (PUD) definition:-
-A type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development.
Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).planned unit development (PUD)
-FROM The NEW FHA Handbook 4000.1 (CAPS/BOLD ADDED)
-A planned unit development (PUD) refers to a residential development that contains, within the overall boundaries of the subdivision, COMMON AREAS OWNED BY A HOMEOWNERS' ASSOCIATION to which all homeowners must belong and to which they must pay lien-supported assessments.
-It is beyond the skills and qualifications of an appraiser to assemble and review ownership documentation in order to determine if homeowners have or have not got ownership/control over the facilities/HOA or any other relevant entity.
-Incorrectly reporting/implying that a subject is a PUD (i.e. where the residents own/control those amenities), when, in fact, it is not, could be viewed as an egregious error or, worse, a deliberate falsification.
-According to GSE requirements, if the facilities/common grounds/amenities are not owned/controlled by the homeowners, the subject does not qualify as a PUD and cannot be reported as such.
"Contrary to popular belief, the zoning district of the property is irrelevant.
"In the context of the secondary market definition, a "PUD" could exist in any zoning district.
"The only way to determine whether or not a property is a PUD is by reviewing the covenants and restrictions which will disclose mandatory membership in the homeowners association.
-Monthly or annual HOA fees may or may not be involved.
"Both Fannie Mae and Freddie Mac consider property to be a PUD if the development has all of the following characteristics:
1. The individual unit owners own or have a leasehold interest in a parcel of land improved with a dwelling. This ownership is not in common with other unit owners.
2. The development is administered by a homeowners’ association that owns or has a leasehold interest in and is obligated to maintain property and improvements within the development. (i.e. greenbelts, recreation facilities, and parking areas) for the common use and benefit of the unit owners.)
3. The unit owners have an automatic, non-severable interest in the homeowners association and pay mandatory dues or assessments.
4. Zoning itself is not a basis for classifying a project or subdivision as a PUD.
-An appraiser is not qualified to offer a 'legal opinion' regarding the 'legal rights' of the home-owners.
-It is assumed that all property-owners have the same benefits.
-But, as is typical of this style of community, the residents have an obligation to pay, but the 'benefits' they are to receive, are not specified.
-APPRAISER IS NOT QUALIFIED TO DETERMINE PUD STATUS SUBJECT OR OFFER A LEGAL OPINION.