The PUD INFORMATION
Section
A planned unit development (PUD) is a unique type of subdivision that typically features small parcels and common areas owned by all owners. These areas may be a clubhouse, private streets, swimming pools, tennis courts, parks, lakes, etc. A homeowners’ association is usually established to manage the development, collect dues, and pay for services to maintain the common areas. If the subject property is in a PUD, provide details of the development in this section. If the subject property is not in a PUD, state that this section is not applicable to this property.
Is the developer/builder in control of the Homeowners’ Association (HOA)?
When a subdivision is developed, part of the process is the formation of a home-owners’ association. When the association is first formed, the developer is in charge. After 50 to 70% of the properties are owner occupied (varies from state to state), the homeowners take over the association. Indicate if the developer is in control of the association by selecting the “Yes” or “No” check box.
Unit Type(s)
The first line of the PUD section requires the appraiser to determine whether the subject is an attached or detached dwelling. If the units are not all complete, the
appraiser has to determine if the unfinished units will be the same as those already completed. This section also requires the appraiser to disclose if the developer is still in control of the Home Owners Association. Indicate this by selecting the appropriate checkbox.
If the units are attached AND the developer is still in control of the Home Owners Association, then complete the rest of the section. If the developer is no longer in control of the HOA OR the subject property is a detached unit, then the rest of the section requires no further analysis.
Example
Is the developer/builder in control of the Homeowners’ Association (HOA)? 5 Yes No Unit Type(s) 5 Detached Attached
Legal Name of Project
Enter the legal name of the project. This information can be obtained through public records or, if it is a new development, by interviewing the developer.
Example
Legal Name of Project Summerfield Meadows
Total Number of Phases
New housing projects are not typically built all at once. They are usually built in different phases, with the lender dispersing funds for the next phase after the previous one is completed. This information can typically be obtained from the developer. Total Number of Units
The number of units may affect the value and will require analysis when selecting comparable properties. For example, if the subject property is part of a 100-unit complex, it may not be appropriate to select comparables from a six-unit project.
Total Number of Units Sold
Enter the total number of units that have been sold by the developer/builder.
Example
Total Number of Phases 3 Total number of units 160 Total number of units sold 160
Total Number of Units Rented
Enter the total number of units rented within the subject property. Total Number of Units for Sale
This is a factor that may affect value. If there are 100 total units in the subject project, and 23 of them are for sale, it appears there is an oversupply of available properties. What is the reason for this and how does it affect the value of the units in the project? Address this with analysis and commentary in your comment or supplemental addendum.
Data Source(s)
Enter the data source for the information regarding the total number of phases, total number of units, total number of units sold, total number of units rented, and total number of units for sale.
Example
Total number of units rented 25 Total number of units for sale 23 Data Source(s) Public records, Developer, MLS
Was the project created by the conversion of existing building(s) into a PUD?
Sometimes a PUD is converted from an existing building with a different purpose, such as a warehouse or apartment building as part of a cities revitalization project. Indicate if the PUD was converted form an existing building by marking the “Yes” or “No” box.
Example
Was the project created by the conversion of existing building(s) into a PUD? 5 Yes No If Yes, date of conversion 01/05/1998
Does the project contain any multi-dwelling units?
Select “Yes” or “No” checkbox to indicate if the project contains multi-dwelling units.
Although the URAR is not to be used with multi-dwelling units, the project may contain a combination both multi- and single-dwelling units. Also, enter the source used to obtain the information.
Are the units, common elements, and recreation facilities complete? Indicate whether the units, common elements, and recreation facilities are complete. If they are not complete, describe the status of completion.
Example
Are the units, common elements, and recreation facilities complete? 5 Yes No If No, describe the status of completion.
Are the common elements leased to/or by the Homeowners’ Association? Indicate whether the common elements of the project are leased by the Homeowners’ Association. If they are then describe the terms and options of the lease in the space provided. Typically, the individual homeowners within a project own an undivided interest in the common elements of the project and these common elements are not leased by the Homeowners’ Association.
Example
Are the common elements leased to or by the Homeowners’ Association? Yes 5 No If Yes, describe the rental terms and options.
Describe common elements and recreational facilities
Common elements, or lack thereof, impact value and the selection of comparable properties from other developments. List the common elements here and make appropriate adjustments in the SALES COMPARISON ANALYSIS section of the URAR.
Example
Chapter 11 Review Exercise
Instructions: Using the information provided, complete the blank URAR PUD
Information section. Check your work using the Answer Key in Appendix A.
The subject property is a detached townhouse located in a Planned Unit Development. The legal name of the project is “Hillside Ranch”. An interview with the developer revealed that this is a newer development, and that developer is in control of the homeowners’ association. The total project is being built in 6 phases, five of which are complete, with the final phase scheduled for completion in the next 6 months. The total number of units planned is 750, of which 600 have been sold. Some of the units (126) are rented. Of the units built, 35 are for sale. There are no multi-dwelling units within the project. All common elements are complete and they include a golf course, three swimming pools, a private gym, and four recreation rooms. An undivided interest in the common elements is owned by the individual homeowners.
