HOA vs. PUD -- Real Estate Q for Indy area (Indianapolis: for sale, condo)

[ImmerLernen]

Hello, Indy-area homeowners (current, former, or anyone in the real estate industry who may know)...

When I see real estate listings for single family homes in the northern 'burbs of Indianapolis, let's just say Hamilton County, I normally see two different notations that go like this:

Ownership Interest Types: Planned Unit Dev

and

Ownership Interest Types: Mandatory Fee

Both types show an HOA fee and what that fee covers. Does anyone know what the differences are between HOA's and PUD's?

I'm asking on this forum rather than under general real estate because I suspect there are local variations. And I realize this is something a good real estate agent can help me with *in person*, but I'd like to get some background info before I get with an agent so I have some idea what to ask about. Thanks!

[ImmerLernen]

Anyone here live in a Planned Unit Development (PUD) in/around Indianapolis? I think I'm most interested to know what that means for a homeowner. Anyone???

[indy_317]

There is a huge issue about PUDs right now in Avon Indiana. From what I can tell, municipalities and/or counties establish zoning ordinances (laws). PUDs seem to be a way in which developers can easier get a variance, basically skirting the law. This is just a guess, but I assume they are disclosing that the development is under a PUD because issues to do with lot size, type of homes, etc. might be different than the local zoning laws. This way a person can't buy a home, move-in, and then claim "This locality requires at least 1/4 lot but yet I have less than that. Give me back my money!" The residential (with one commercial building) PUD in Avon is basically a neighborhood with high density (ie: very, very small yards for the homes). It will more than likely have an active HOA with the typical rules and regulations that come with those.

[ImmerLernen]

Originally Posted by indy_317

PUDs seem to be a way in which developers can easier get a variance, basically skirting the law. This is just a guess, but I assume they are disclosing that the development is under a PUD because issues to do with lot size, type of homes, etc. might be different than the local zoning laws.

Thanks indy_317! Sounds like a reasonable guess from the reading I've done myself.

The weird thing is, though, I would expect to see high-density (small lots) and/or some commercial/retail spaces within a PUD. But, here's an example of a home listed for sale with the PUD notation (on at least one RE website), that doesn't seem to fit that description...other than all the nearby homes have exactly 3 large trees in the front yard, mostly aligned in the same way:

https://www.realtor.com/realestatean...2_M40823-35165

[rrah]

A PUD is typically a type of zoning. It doesn't necessarily have anything to do with whether an HOA exists or not.

Something can be in a PUD zone and not have an HOA or it can have an HOA. Something can be in a different type of zone and have an HOA or not have an HOA. Generally in a PUD, fees will be collected one way or another.

I've lived near an area in the past that was developed as a PUD. Houses in the PUD were required to pay an extra fee when building permits were issued to cover things like utility extensions, parks, and other types of impact fees. Because PUDs typically include common areas that need to be maintained, there is a fee. When I lived in a PUD all fees were collected via the HOA--that was the city requirement.

I suspect it's an odd way of including the zoning information that is how that MLS works. RedFin has a decent explanation. https://www.redfin.com/resources/wha...it-development

[North Beach Person]

As mentioned a PUD is a zoning type/classification. Many will typically include mixed use areas, strictly commercial areas, different types of housing (SFH/TH/Condo/Duplex/Multi-family) in various areas.


It's sort of trying to recreate a small town in suburban sub-division.

[ImmerLernen]

Thanks, everyone!

Are there any specific questions I should ask or things to look out for before making an offer to buy a house in a PUD (if I ever found myself in that situation)?