What is/isnt a PUD?

[DWiley]

Freddie Mac on PUDs -

Freddie Mac requires the Seller to identify if a unit is located in a Planned Unit Development (PUD). Freddie Mac defines a PUD as a real estate project in which:

• Each unit owner holds title to the lot and the improvements on the lot
• The homeowners association holds title to the Common Elements
• The unit owners have a right to the use of the Common Elements, and
• The unit owners pay a fee to the homeowners association to maintain the Common Elements for their benefit

Note: Zoning is not a basis for classifying a project or subdivision as a PUD. To be classified as a PUD, units in projects or subdivisions must meet all the requirements above.

Freddie Mac Single-Family Seller/Servicer Guide

The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

guide.freddiemac.com

 

[Zoe]

With VA, it is required to be paid by the unit owners. It is not voluntary HOA. Some people get that mixed up sometimes.

 

[Shawangunk RE]

If there is no land ownership its a condo, if there is only fractional ownership its a coop, If there is a "mandatory" HOA fee, FNMA says its a pud, regardless of if its attached or not. PUD can be its zoning classification by the town, but that doesnt make the property a PUD in the eyes of FNMA if there is no HOA fee.

 

[Fernando]

No need to think so hard. Yet we should know about difference in ownership.
Appraisers familiar with the areas know the ownership just be knowing the address.
Nevertheless, just look at the Prelim and see what kind of ownership.
Still confused, look at the plat map and you can see if there's site dimension and common areas.
Still confused, talk to Title Company.

 

[Dublin ohio]

Not sure what is available in your area. But can you search recorded docs for a condo declaration. They spell out everything around here

 

[nauthead]

If there is no land ownership its a condo, if there is only fractional ownership its a coop, If there is a "mandatory" HOA fee, FNMA says its a pud, regardless of if its attached or not. PUD can be its zoning classification by the town, but that doesnt make the property a PUD in the eyes of FNMA if there is no HOA fee.

This is incorrect. As DWiley noted, the HOA must hold title to the common areas. If the HOA does not hold title to the common areas, it is not a PUD, even if dues are mandatory.

 

[Fernando]

This is incorrect. As DWiley noted, the HOA must hold title to the common areas. If the HOA does not hold title to the common areas, it is not a PUD, even if dues are mandatory.

In Bay Area near SF probably oldest PUD in the nation, the tract subdivision of detached SFR does not look like a PUD. It has a small less than $100/year HOA and does not own common areas.
Many appraisers, buyers, and agents would not know this. Sometimes the lender which catches this, request change to PUD in 1004. Still doesn't change appraisal value so never a problem.

 

[sputnam]

Freddie Mac on PUDs -

Freddie Mac requires the Seller to identify if a unit is located in a Planned Unit Development (PUD). Freddie Mac defines a PUD as a real estate project in which:

• Each unit owner holds title to the lot and the improvements on the lot
• The homeowners association holds title to the Common Elements
• The unit owners have a right to the use of the Common Elements, and
• The unit owners pay a fee to the homeowners association to maintain the Common Elements for their benefit

Note: Zoning is not a basis for classifying a project or subdivision as a PUD. To be classified as a PUD, units in projects or subdivisions must meet all the requirements above.

Freddie Mac Single-Family Seller/Servicer Guide

The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

guide.freddiemac.com

Fannie too

 

[Terrel L. Shields]

What is a PUD if it can't be located in a Condominium?

I think these are called PUDs locally. Surrounding grounds are common ownership

 

[residentialguy]

The city has this zoned as PD, Planned Development.

PUD on the form has nothing to do with zoning. The form has a section for zoning. In general, If it has an association with mandatory dues and common grounds, it's a PUD. (of course there are always a few exceptions and snares)