To PUD Or not to PUD That is the question...

[Fernando]

Appraisers who know the area are aware of the PUDs in area.
As mentioned this old part of town of mine looks like SFR neighborhood but has that crazy $11/year HOA fee.
I asked the homeowner and owner doesn't really know what's it for. Some say it's a newsletter. One day I will find out what's it really for.
Some MLS comps don't mention the HOA. Many people not aware of this abnormal fee.
If underwriter called you out, you need to find out about the PUD situation.

 

[Dublin ohio]

As mentioned this old part of town of mine looks like SFR neighborhood but has that crazy $11/year HOA fee.

Is the fee mandatory and enforceable? BTW how does a pud made up of all single family homes look different from a neighborhood of single family homes that are not in a pud. I have neighborhoods where you can drive down a common street and some are puds, some are not. But you would never know the difference. Similar homes built by same builders.

 

[Fernando]

Is the fee mandatory and enforceable? BTW how does a pud made up of all single family homes look different from a neighborhood of single family homes that are not in a pud. I have neighborhoods where you can drive down a common street and some are puds, some are not. But you would never know the difference. Similar homes built by same builders.

You ask homeowner.
In my case, although they pay $11/year, they don't consider their home in PUD.
This area is probably oldest PUD around so I don't know what the PUD thinking was back then.

 

[Dublin ohio]

You ask homeowner.

they don't consider their home in PUD

Do you realize how totally ignorant the above sounds?

 

[Fernando]

Do you realize how totally ignorant the above sounds?

Yes, $11/year and consider a PUD and there's no common areas.
Should get rid of the $11/year. Now you know why I don't want to check the PUD box.

 

[sputnam]

The Lender definition of PUD is if there are mandatory HOA fees. That's all they care about and that's how you decide what box to check.. or not check.. on the appraisal report. You can include as much commentary as you want to.... or as little as you can get by with.

 

[Jack Crabb]

If underwriter called you out, you need to find out about the PUD situation.

It seems you haven't read my posts...

I'm curious, what would you do to find out about the PUD situation?

 

[Jack Crabb]

But it does not conform to Fannie requirements. If the dues are voluntary and membership is not required. It is not a Pud per Fannie. Period.

The FNMA definition is what I've always used to determine whether or not a development qualifies as a PUD. This is the first time it's been challenged.

I researched de minimis PUD, as I'd never heard the term before. It seems a possibility, but I don't feel good about checking the PUD box without supporting documentation, which the lender/underwriter/title company has failed to provide... Not to mention the UAD validator in my software wants me to complete the "Project Information for PUDs" when I check the PUD box - seems misleading to me, since no one is in control of the HOA because there is no HOA...

 

[Jack Crabb]

The Lender definition of PUD is if there are mandatory HOA fees. That's all they care about and that's how you decide what box to check.. or not check.. on the appraisal report. You can include as much commentary as you want to.... or as little as you can get by with.

That makes this case an anomaly... Mandatory HOA fees are not all this lender cares about. I wish it were that simple...

I've iterated and reiterated that point - there are no mandatory HOA fees.

 

[jay trotta]

IMO, (not familiar with your area) here they are spelled out in the Deed (IE: Common Ownership Interest- part of the COIA per State) don't know your State Regs, also Some of the municipalities have their own Zoning and may expand on their Regs., but it needs to meet the State requirement minimum.