Zoned PUD, but not a PUD by Fannie standards

[Tim Hicks (Texas)]

The Fannie Mae selling guide states:

Eligibility Requirements for PUD Projects​

A PUD is a project or subdivision that consists of common property and improvements that areowned and maintained by an HOA for the benefit and use of the individual PUD units. In order for a project to qualify as a PUD, each unit owner’s membership in the HOA must be automatic and nonseverable, and the payment of assessments related to the unit must be mandatory.​

Zoning is not a basis for classifying a project or subdivision as a PUD.

Doesn't this seem odd and contradictory to not providing a misleading report. Occasionally, I will appraise properties that are zoned PUD, but there is no HOA or HOA dues. It is legally zoned a PUD, but we are not to mark it a PUD in our reports. It just seems wrong.​

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[Don Clark]

The Fannie Mae selling guide states:

Doesn't this seem odd and contradictory to not providing a misleading report. Occasionally, I will appraise properties that are zoned PUD, but there is no HOA or HOA dues. It is legally zoned a PUD, but we are not to mark it a PUD in our reports. It just seems wrong.​

I do not mark the PUD box at top of front page. However, under zoning I clearly indicate it is PUD. For example, under zoning. PUD or if it is otherwise classified such as PDH1, PDH2, etc. Under Zoning description I mark as Residential PUD. Never had it rejected. Only gets rejected if you mark PUD at top of page.

 

[eld2310]

A zoning district itself doesn't make a property that lies within it something that it's not. That's like saying that a commercial property lying within a residential zone is therefore a residence. It is what it is.

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[fractal7221]

This topic seems to frequently come up. Just because its legally zoned as a PUD does not mean its actually functioning as a PUD. Same as a property legally zoned agricultural is not necessarily a farm. The PUD box is only used to alert the lender that there is a mandatory fee attached to the property.

Fannie isn't asking you to change the zoning, just to not check the PUD box in the subject section.

 

[Ken B]

Not to be confused with Peptic Ulcer Disease. Context is everything.

 

[Mr Rex]

and not to be confused with pulling your pud.

 

[form1025]

and not to be confused with pulling your pud.

 

[Walter Kirk]

A PUD is a Planned Unit Development which may or may not have common features or fees.
Do not confuse the planning and zoning term with the financial shorthand.

 

[Thomas Fiehler]

When I get these odd balls (maybe bad choice of words re: pud) I always explain that the zoning is for PUD but that the subject is not located in a PUD per FNMA's definition and that there are no mandatory fees.

 

[Lee Lansford]

The Fannie Mae selling guide states:

Doesn't this seem odd and contradictory to not providing a misleading report. Occasionally, I will appraise properties that are zoned PUD, but there is no HOA or HOA dues. It is legally zoned a PUD, but we are not to mark it a PUD in our reports. It just seems wrong.​

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Get over it.

Seriously.