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What Is Pud?

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zhencai

Sophomore Member
Joined
May 27, 2003
Professional Status
Certified Residential Appraiser
State
California
Dear All,

I'm confused on PUD. Is it SFR with HOA?


Thank you,
Zhen Cai
 

Patrick Egger

Sophomore Member
Joined
May 29, 2003
Professional Status
Certified General Appraiser
State
Nevada
PUD is a "planned unit development" where there is an HOA ... see FNMA guide below

FNMA Guide
 

zhencai

Sophomore Member
Joined
May 27, 2003
Professional Status
Certified Residential Appraiser
State
California
Thank you for the link.

I have an order to appraise a house. According to Realquest, it's SFR. But owner pays $40 HOA every month. I was told to put PUD in URAR Project Type field and SFR in the zoning field. Doe it make sense? So is it SFR or PUD?

Thanks.
Zhen Cai
 

Patrick Egger

Sophomore Member
Joined
May 29, 2003
Professional Status
Certified General Appraiser
State
Nevada
Sounds like its one in the same ... a PUD is often a SFR - PUD, where there's a HOA for the maintenance of greenbelts, perimeter walls, and minor common improvements.

In your case, it looks like you have a PUD (project type) and the zoning would be what ever the local authority has granted ... in the zoning are, you are suppose to indicate the zoning designation (R-1, R-2, etc) along with what that means, R-1 single family 4 units per acre or R-2 PUD Single family planned development, etc.

Hope this helps you
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
best and most succinct definition I have found:

Click here for PUD Thread check page 2 about halfway down....

Jo Ann Meyer Stratton Posted: Feb 23 2003, 08:46 AM

There are two different locations on the URAR/2005 or any other form where a notation about PUD may be made. They are two very completely separate things and typically do not have a thing to do with each other.

The first is at the top of the URAR where it is asking about private restrictions on the property. That is where you check PUD if there is a mandatory home owner's association dues. The HOA could place a lien on the property if the dues are not paid. If there is a home owner's association and their dues are voluntary--it is not a PUD.

The second location might be in the site area--there they are asking about public restrictions on the property. What is the zoning? That specific governing agency might have a type of zoning that they call PUD, which would stand for Planned Unit Development and has nothing what so ever to do with home owner's association or the ability of a HOA to place a lien on the property. The local government entity might of decided they liked those initials to be used for a specific definition and by happen stance, it happens to also be the same initials to indicate private restrictions.

Private restrictions--MANDATORY home owner's association dues--check PUD box at the top of the form

Public restrictions--zoning that might be called a PUD in that specific governing agency's terminology and does not have any effect on the PUD box at the top of the page.

So be very careful and don't mix or confuse public restrictions with private restrictions.
The thread has additional commentary on the intent and purpose of PUD use/definitions on Fannie forms!
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Simple answer is: If there is a mandatory home owners association, it is a PUD. If there is not a mandatory home owners association, it is not a PUD. PUDs range from minimal (HOA board and maintenance of the flowers at the entrances to the subdivision) to very complex (condominiums, etc). But the simple answer is whether there is a mandatory homeowners association.

Roger
 

zhencai

Sophomore Member
Joined
May 27, 2003
Professional Status
Certified Residential Appraiser
State
California
OK, I understand now. Thanks a lot!

One more questions, where do I find the zoning code (R1, R2 etc.)?

Thanks again.
Zhen Cai
 

Pat Butler

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Except here in Illinois where PUD is often a zoning descriptor. We have many PUD's without HOA dues and many other properties with HOA dues that aren't PUD's. They may be condos or simply properties encumbered with HOA payments as a resulted of deed restrictions.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Zoning has absolutely nothing what so ever to do with the information that is asked for at the top of the URAR/2055. That area is asking about private restrictions against the fee simple interest on the property. See Section 302 - Fannie Mae guidelines effective 6/30/2002.

Section 302 - Units in PUD Projects

A planned unit development (PUD) is a project or subdivision that consists of common property and improvements that are owned and maintained by an owners' association for the benefit and use of the individual units within the project. For a project to qualify as a PUD, the owners' association must require automatic, nonseverable membership for each individual unit owner, and provide for mandatory assessments. Zoning should not be the basis for classifying a project as a PUD. Appraisals for PUD units that secure manually underwritten mortgages are generally documented on the Uniform Residential Appraisal Report (Form 1004) or the Desktop Underwriter Quantitative Analysis Appraisal Report (Form 2055). To assure that all the specific eligibility criteria for a new PUD project are adequately addressed, it may be necessary to use an addendum to Form 1004 to provide information for appraisals related to attached units in new PUD projects (particularly when the developer is still in control of the owners' association). Desktop Underwriter will specify the level of property analysis and review for Desktop Underwriter-processed mortgages that are secured by PUD units. The appraisal of an individual unit in a PUD requires the appraiser to analyze the PUD project as well as the individual unit. The appraiser must pay special attention to the location of the individual unit within the project, the project's amenities, and the amount and purpose of the owners' association assessment since the marketability and value of the individual units in a project generally depend on the marketability and appeal of the project itself.

So depending on the laws of your state regarding PUDs, if there is a mandatory home owner's association fee to a private association then it is a PUD, regardless of zoning!

Zoning would be reported in the site area, which would be a governmental restriction on the property. The term PUD might be used in some cities or towns or counties to identify a specific type of zoning and has absolutely nothing to do with the top of the form or what Section 302 is describing.
 
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