A Planned Unit Development (PUD) refers to a residential development that contains, within the overall boundary of the subdivision, common areas and facilities owned by a Homeowners’ Association (HOA), to which all homeowners must belong and to which they must pay lien-supported assessments. A unit in a PUD consists of the fee title to the real estate represented by the land and the improvements thereon plus the benefits arising from ownership of an interest in the HOA.
An appraiser must contact the Mortgagee if the property is located in a PUD that does not meet this definition.
Instructions detailing specific requirements for reporting the results of the appraisal are found in the FHA Single Family Housing Appraisal Report and Data Delivery Guide at https://www.hud.gov/program_offices/housing/sfh/handbook_references
For additional information see Handbook 4000.1 II.D.3. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh