What is/isnt a PUD?

[KHS445]

Planned unit development - Wikipedia

en.m.wikipedia.org

The conceptual origins of PUDs date back to the 1926 enactment of the Model Planning Enabling Act of 1925 by the Committee on the Regional Plan of New York, which allowed for the decisions of planning boards and commissions to precede decisions required by local zoning regulations.

This is the correct answer. A PUD is an additional permitted or special use within a particular zoning district. Basically it allows a developer of a large parcel of property to work with the local zoning authority to build out the development contrary to what is allowed within the particular zoning district, without amending the zoning ordinance. Typically a PUD will address things like lot size, setbacks, development density, building sizes, heights, mixed uses, etc.

A PUD is strictly zoning related, while condominium is a form of ownership. A PUD may or may not include condo development just like a condo development may or may not have been developed using PUD zoning agreement.

 

[sputnam]

Unfortunately, 'PUD' is another one of the terms that have multiple meanings. It is a type of development. It's a zoning designation. And most importantly to appraisers wondering whether to check the box or not... in an appraisal reported on the 1004 and intended for Fannie/Freddie... the property is a PUD if there are mandatory HOA dues and it's not a condo.

 

[Tom D]

if the owner's house is sitting on 1 square foot of owner owned ground, it is a pud. typically, they have a house footprint that they own. title say pud, you lose the argument that it is not a pud with the lender.

 

[TerryRohrer]

That’s another issue, the diff between a detached condo and a site condo…?
The site is referred to as a Unit, and I was able to find the size of the site.
And county GIS only outlines the entire sub, rather than each individual site.

I have been told that Michigan is much like Montana in this regard, so something here may help you.

Here, condominium documents and townhome documents are nearly identical (and the "townhome is a style not a form of ownership" crowd can spare me their crap until they understand the situation here). To qualify what would otherwise be condos, but avoid condo financing challenges in the 1990s, attorneys began defining a unit as the building and the land beneath it. So, without a survey, "legal" tracts were being created on paper. The Declaration of Unit Ownership will include, in the Description of Project and Units, for example, in the Description of Unit section, "Each townhome unit includes the area bounded by the exterior surfaces of the walls of the building, including the garage, the exterior of the roof, and the common wall between the adjoining townhomes, all to the center of the common wall separating two townhomes. The land beneath each units (sic) is part of the unit. The driveway, patio, and patio privacy fencing, if any, the air conditioning compressor, and its pad, if any, and the entry sidewalk, if any, serving a single townhome are also part of the unit. Utility lines and pipes which serve only one townhome shall be a part of the unit from the interior of the unit to the point where they are metered or join lines or pipes serving other units."

From this description, you can see the site could be several individual, non-contiguous parcels. If this verbiage is lacking, it is a condo. If it is there, it is a townhome, appraised on a 1004. With only a few exceptions that do not fit either camp clearly, this distinction has not failed me yet. For the dimwits clamoring to just blindly "look at the prelim," I seldom see such and have been provided with "prelims" that are incorrect.

 

[Damienvball]

Unfortunately, 'PUD' is another one of the terms that have multiple meanings. It is a type of development. It's a zoning designation. And most importantly to appraisers wondering whether to check the box or not... in an appraisal reported on the 1004 and intended for Fannie/Freddie... the property is a PUD if there are mandatory HOA dues and it's not a condo.

I have had assignments with HOA dues and was told by lender I needed to check PUD box on page 1 however after calling planning & zoning for that County, i was informed the subject was NOT in a PUD. So apparently there are exceptions for different Counties in my state anyway.

 

[Dublin ohio]

I have had assignments with HOA dues and was told by lender I needed to check PUD box on page 1 however after calling planning & zoning for that County, i was informed the subject was NOT in a PUD. So apparently there are exceptions for different Counties in my state anyway.

Planning and zoning may not define a pud the same way the gses do.

PUD Project Requirements​

For a project to qualify as a PUD, all of the following requirements must be met:

• each unit owner’s membership in the HOA must be automatic and nonseverable,
• the payment of assessments related to the unit must be mandatory,
• common property and improvements must be owned and maintained by an HOA for the benefit and use of the unit owners, and
• the subject unit must not be part of a condo or co-op project.

Zoning is not a basis for classifying a project or subdivision as a PUD. Units in projects or subdivisions simply zoned as PUDs that include the following characteristics are not defined as PUD projects under Fannie Mae’s policies. These projects

• have no common property and improvements,
• do not require the establishment of and membership in an HOA, and
• do not require the payment of assessments.

 

[Jayjay25]

It’s all in the declaration in my neck of the woods. The declaration will reference the name of the project followed by either “a condominium “ or a “planned community”. A “Planned community” has a separate legal definition defined in the state statues and indicates the unit is a PUD.

 

[sputnam]

I have had assignments with HOA dues and was told by lender I needed to check PUD box on page 1 however after calling planning & zoning for that County, i was informed the subject was NOT in a PUD. So apparently there are exceptions for different Counties in my state anyway.

What the county says about it isn't the end of the story. PUD is a zoning in some places. You report zoning in the site section of the 1004. If there are HOA dues that are required then, you check the 'PUD' box in the subject section of the form.

 

[Mark K]

In this area, a PUD zoning allows developers to mix residential with small commercial and office use in that area without having separate zoning classifications within a small area. They (developers) will get PUD approval for say 40 acres and put commercial/strip center along the road frontage, maybe 5-10 ac. of apartments behind that, then SFR or patio homes behind that, all in the same zoning. It allows more flexibility for the developer but sometimes screws the SFR owners over if the developer changes their mind and puts 25 ac. of commercial office and then a few acres of patio homes right next to them.

None of this matters to F/F. Mandatory HOA dues means PUD, zoning doesn't matter at all. I've seen small rural subdivisions with maybe 5-10 houses on 5 acre lots that have mandatory dues for common drive maint. and to F/F, its a PUD.

 

[nauthead]

Having mandatory dues does not make a property a PUD-that is just one of the requirements. As Dublin noted above, the common areas must also be owned and maintained by the HOA. The Villages in Central Florida has mandatory dues but it is not a PUD because the home owners do not and will never own the common areas. The common areas are owned by the developer.