Are HOA, PUD, condo fee, and other assessments included in a Fully-Funded Life Expectancy Set-Aside for a Home Equity Conversion Mortgage (HECM)?

No.  A Fully-Funded Life Expectancy Set-Aside includes funds only for the property charges that will be paid directly by the mortgagee from the Set-Aside: real estate taxes, hazard insurance and, if applicable, flood insurance.
Homeowners Association (HOA), Planned Unit Development (PUD), and condominium fees and other assessments must be paid directly by the borrower from the borrower’s own funds.
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Section 5.2 at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-02941