Planned Unit Development (PUD)

A Planned Unit Development (PUD) is a residential community where homeowners own their individual lot and home (fee simple) plus a share of common areas managed by an HOA. Condos own only the interior airspace of their unit, with the building and land collectively owned. PUDs feel like single-family ownership with HOA amenities (pool, gym, parks, gated entry); condos feel like apartment-style ownership with shared structures.

PUD appraisals use Fannie Mae Form 1004 (the standard single-family form) with PUD-specific addenda documenting the HOA structure, dues, and shared amenities. Comparable sales typically come from within the same PUD when available; otherwise from similar PUDs nearby. We analyze the HOA reserves, dues vs amenities, and any active special assessments.

For Fannie Mae and Freddie Mac PUD financing, the level of review depends on the PUD type. Established PUDs (turned over to homeowner control, with mature HOA) typically require minimal review. New construction or developer-controlled PUDs may require full project review. PUD project review is generally less rigorous than condo project review.

Dues affect value through the same dynamics as condos: high dues reduce affordability and can pressure value, but dues that fund well-maintained amenities and robust reserves support value. We benchmark dues against comparable PUDs and analyze what they cover. Above-market dues with strong amenities and reserves typically reflect well-managed communities; below-market dues with weak reserves often signal future special assessments.

Yes. PUDs are common throughout LA County, from Westwood and Brentwood to the South Bay, San Fernando Valley, and San Gabriel Valley. We appraise PUDs for purchase, refinance, estate, divorce, and PMI removal purposes. Our reports document the PUD structure and HOA in the level of detail expected by lenders and end users.