Voluntary HOA~PUD info???

[Suz-E]

A first for me...

Long story short. Did an appraisal , unincorporated section of the town, river rights, blah blah....they have a $30 per year Voluntary association....and it covers nothing, literally. The owners say they rarely have a meeting and don't have any contact information for who would be in charge. They threw away last years statement. They don't know why they belong to it, said it just "seemed like a good idea" (wonder what they do with everyone's $30 a year )Makes you wonder!

So if it's voluntary and it really serves no purpose....must I include the PUD section? My mentor says it's a good idea to include it. So I have to DIG for this information, and for all my time (even that I've already put into this) probably won't make any $$ for this appraisal.

Couldn't I just comment that it's voluntary, therefore PUD info is not required?

 

[patti biga]

In my area, this is not a PUD. PUD fees are not voluntary.

 

[Suz-E]

In my area, this is not a PUD. PUD fees are not voluntary.

Exactly, it's not a PUD, so why on earth should I have to put in that info??

 

[Chris Colston]

Read the instructions on the new 1004 PUD section, show those instructions to your mentor. When you are supposed to include the information is printed right on the form. Fannie Mae and other readers of the form define a PUD as having a MANDITORY fee. But then again, if your mentor signs your checks do as your mentor says to do.

 

[Michael Chu]

A first for me...

Couldn't I just comment that it's voluntary, therefore PUD info is not required?

Right conclusion, but wrong reason.
On the new forms, I've always understood the question or logic behind it to be "AND" not a "OR"

Is the developer/builder in control of the Homeowners’ Association (HOA)? Yes No Unit type(s) [CB] Detached [CB] Attached
Provide the following information for PUDs ONLY if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit.

Thus PUD info is only required if both the developer is in control AND the improvements are 'Attached' If neither is true, no PUD info required.

The old form was not as clear about this leaving UW to demand this at their whim.

.

 

[Derek Harkrider]

I have had to deal with a similar situation before. The solution was to leave it blank on page 1, and to add a comment explaining the situation on the supplemental addendum page. It is important to include that it is not mandatory, but voluntary. It is also important that you clarify any PUD and HOA information so the underwriter does not get confused (use simple words). This way you have fully disclosed the situation and remain Fannie Mae compliant.

 

[Jungle Boy]

I've yet to appraise where the developer was in control and the units were attached.
I've yet to complete the PUD section.
Filled in the first 2 boxes many many times.

 

[Caterina Platt]

Since the fee is not mandatory, we know there can be no foreclosure situation forced due to a non-payment of the dues. You have no true legal HOA entity, and it really amounts to a private social club if anything. Inclusion of this in the PUD section will confuse underwriters and title officers more than anything. I'd make commentary somewhere conspicuous about a non-mandatory HOA that appears to be relatively inactive and leave it at that.

To be honest, quizzing members about the financial what nots of their 'private club' could even get you an uninvited ear chewing.

The true creation of a Homeowner's Association with powers of assessing mandatory dues on the lots requires specific legal steps, public filings, necessary language in the creation documents, etc.

 

[Suz-E]

Love this place!!!

Thank you for all your input. It's nice to know I can get honest points of view. :happy: :happy: :happy:

 

[Mike Garrett RAA]

Come on kids....

"mandatory, non-serverable dues" constitutes a PUD per Fannie Mae, HUD, and VA. If the dues are not that then don't check the PUD box.

Many times, when there are mandatory dues, I mark the PUD box next to the dues and then check the box concerning "is the developer in control" but nothing else in the PUD section. Never had an underwriter request that entire section be filled out.