Eligibility Requirements for Properties in a PUD

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 Homium and FNMA’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.

Homium classifies PUD projects as either

• Type E—established PUD projects in which the developer has turned over voting control of the HOA to the unit purchasers.

• Type F—new PUD projects in which the developer has not turned over voting control of the HOA to the unit purchasers.