What Constitutes A Pud?

[BarrySW1963]

So, I understand that when the zoning maps in our area mark something as a PUD (in lieu of a zoning classification), that it is actually a PUD, and the rules for the lot sizes, house sizes, set backs, etc. are determined by what the developer(s) of that PUD negotiated with the city, in lieu of zoning (i.e. these parcels aren't zoned, but their development is still subject to tight rules, and those rules are found in the PUD filings with the city's development office). In these cases, the houses are subject to mandatory membership HOAs, with mandatory membership dues/fees. Do you mark this as "PUD" for the zoning on pg. 1 of the URAR? (PUD fees are marked on pg. 1 of the URAR.)

We also have developments that have formal zoning classifications where larger parcels were subdivided and developed en mass, that also have mandatory-membership HOAs. In this case, on the URAR, the zoning is marked per what the city maps have the parcel zoned as (i.e. SF1, SF2, etc.) instead of "PUD", with additional data in the description field for the zoning (i.e., "7,000 sf minimum lot with 1,600 sf minimum dwelling, etc.). These are also considered to be PUDs, but subject to zoning regulations as well as whatever rules the developer negotiated with the city for the development. (PUD fees are marked on pg. 1 of the URAR, same as the first case.)

So, how would you handle parcels where this happens: a larger multi-acre parcel is divided into several dozen or a hundred lots, and the development of these lots is controlled by CC&Rs, or deed restrictions. In these instances, the new, smaller parcels aren't zoned, and the lots aren't subject to mandatory-memberhip HOAs. Homes are then stick-built by individual (custom, semi-custom, "build on your own lot", etc.) builders and not by mass developers. What individuals can do with the lots is completely controlled by the deed restrictions. Would you also call this a PUD?

 

[huntercharlie]

I'm assuming you're doing this on the URAR and therefore Fannie/Freddie compliant.

Here is the link for Fannie's definition as it pertains to them.

https://www.fanniemae.com/content/guide/selling/b4/2.3/01.html

 

[Sid Holderly]

PUD by zoning is not the same generally as a PUD by Ownership. Local zoning codes may have many different types of PUD zoning. Sometimes some counties have PUD-1 PUD-2 PUD-I PUD-R. A PUD type of ownership could also be in a Residential or industrial zone.

Use HUD rules on Ownership for PUD in the Ownership section of the form (ownership) and Local Zoning rules in the zoning seciton and gives a lot of explanation of the detials.

No one comment can fit all combinations.

Same abreviation but ofter very different definitions.

 

[chad hampton]

Mandatory HOA dues = PUD

 

[Jo Ann Meyer Stratton]

Zoning has absolutely nothing to do with the top section of the form. Mandatory HOA fees is the ONLY deciding factor where the PUD box is checked. Nonpayment of HOA fees could create a superior lien against the property and leave the lender out of the picture. Top part of the form = private restrictions. Site section of the form = public restrictions (like zoning).

 

[jay trotta]

Mandatory HOA dues = PUD

It Depends; different States different applicability (IE: Deed restrictions & Declarations)

 

[Restrain]

For our purposes, while it can be zoned a PUD, if no mandatory HOA, not a PUD. Conversely, if mandatory HOA dues, it is a PUD. That is the determinant

 

[TRESinc]

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.

 

[Howard Klahr]

It Depends; different States different applicability

NO, Wrong, Incorrect. Fannie Mae defines PUD for their purposes as it relates to the question on the form at the TOP of page 1. See post #8 and #5

Zoning has absolutely nothing to do with addressing this issue at the TOP of page 1 on the form. Now in regard to the Site analysis section further down on page 1 where it asks about zoning, that is where the zoning information is entered, whether it is PUD, Resid or whatever.

 

[BarrySW1963]

Thank you. Glad to know we've been handling them correctly. Now, what to do about the lender and their agent (AMC) who will not back down that the subject is a PUD, despite no mandatory HOA fees. How on earth is sharing showing the FNMA definition insufficient (meaning, they are still pushing). Will let y'all know how this plays out.