Zoned PUD, but not a PUD by Fannie standards

[Tim Hicks (Texas)]

It just seems weird that an entire subdivision can be zoned PUD, but since there is no HOA dues then it is not a PUD. I am over it, I just think it is silly.

 

[Jo Ann Meyer Stratton]

As I have posted many, many, many times: the top of the form has absolutely nothing to do with zoning. Private restrictions that could create a superior lien to the mortgage is to be reported at the top of the form. If an owner did not pay their HOA dues, that lien takes precedence over the mortgage and the property could be sold out from under the mortgage.

Public restrictions are reported in the site section of the reports, items that are supported by property taxes. Zoning only (not any private restrictions) is reported in the site section.

Tim, are you bored this afternoon?

 

[Tim Hicks (Texas)]

As I have posted many, many, many times: the top of the form has absolutely nothing to do with zoning. Private restrictions that could create a superior lien to the mortgage is to be reported at the top of the form. If an owner did not pay their HOA dues, that lien takes precedence over the mortgage and the property could be sold out from under the mortgage.

Public restrictions are reported in the site section of the reports, items that are supported by property taxes. Zoning only (not any private restrictions) is reported in the site section.

Tim, are you bored this afternoon?

I am swamped and want to do anything else but my stack of work.

 

[Smokey Bear]

Yeah, Fannie has 'redefined' what a PUD is, and it now has two legal meanings, totally unrelated to each other. More evidence that Fannie Mae doesn't have a clue.

 

[Walter Kirk]

It just seems weird that an entire subdivision can be zoned PUD, but since there is no HOA dues then it is not a PUD. I am over it, I just think it is silly.

I grew up in and purchased my first properties in a PUD developed in 1917, long before anyone dreamed of an HOA. All of the houses were planned as housing for a shipyard with smaller houses for lower paid employees, larger houses for managers, apartments, rooming houses, stores and public transportation as well as common areas deeded to the city.

There is a whole township in my area (Willingboro Twp)which is a PUD without an HOA.

 

[residentialguy]

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've appraised SFR in Agricultural and commercial zones. Should I say the house is an agricultural or commercial property just because the zoning title is misleading?

 

[Pat Butler]

In Fannie's wisdom they chose a term that already had a different meaning. Sort of like how the ASB used the term recertification of value to have a meaning that was different than how it had been meant prior to them changing it.

 

[Vermonter]

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.​

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.​

If it falls under this definition or my states definition, which is more clear, I mark PUD, regardless the HOA dues. Have had battles with borrowers and zoning administrators, especially when it comes to verbal maintenance agreements, but it is what it is.

Are you only going by the short zoning classification? Are you sure "PUD" zoning only allows PUD use? Most times there are allowances for other property types in the fine print. Just like under Residential zoning here, multi-family, condo, PUD is allowed.

 

[sputnam]

About the same as the 'townhouse' issue. It makes life more difficult when the term is used to mean more than one thing.

 

[residentialguy]

If it falls under this definition or my states definition, which is more clear, I mark PUD, regardless the HOA dues. Have had battles with borrowers and zoning administrators, especially when it comes to verbal maintenance agreements, but it is what it is.

Are you only going by the short zoning classification? Are you sure "PUD" zoning only allows PUD use? Most times there are allowances for other property types in the fine print. Just like under Residential zoning here, multi-family, condo, PUD is allowed.

Then you're doing it wrong! Fannie mae report needs to be done by Fannie Mae rules. That box is not about zoning. There's another box for zoning where you get to tell them all about that.