HOA vs PUD? What makes them different? Residents in urban areas have an alternate option to HOAs called PUDs, but what is a PUD home? When it comes to planned unit development (PUD) pros and cons, urban residents need to consider if a PUD community is the right fit.
HOA vs PUD – Which Is Better?
When shopping for prospective communities to reside in, residents will have the chance to decide whether or not they would like to reside in a community that has an HOA. Even though HOAs are usually the most common type of community association, there is another type of community available in urban areas called a PUD.
When deciding which community is the best place to live, it is important to have a full understanding of the difference between the two communities so that residents can make the best choice for their particular circumstances. If you are trying to learn more about different types of communities on the market, then it is highly recommended to review the information below:
What Is a PUD?
PUD stands for Planned Urban Development and is similar to a small town that is self-contained. PUDs usually are formed in condominium buildings due to their location in urban areas; however, PUDs can also include single-family and townhome communities.
Another important fact about PUDs is that they can include unique amenities and can be organized for both commercial and residential units. In a PUD, there are often commercial properties that will serve the needs of their residents including stores and restaurants. In PUDs, there also can be maintenance services that even include cleaning the exterior of the property and its landscaping.
When assessing whether it is better to live in an HOA vs PUD community, it is best to know the differences to make the right choice for your particular needs.
What Is an HOA?
Many residents are unsure about HOAs since they are a type of organization that can be quite complex to understand for new homeowners or individuals that are not originally from the United States.
HOAs are widespread all over the United States and many of them have particular regulations that are actively enforced in both residential communities and condominiums.
HOAs are typically formed when the community or condominium is constructed and obligations to them transfer each subsequent owner that decides to invest in that particular property. When prospective investors are choosing their ideal property to purchase, it is wise to review the exact stipulations of the HOA to ensure that there are not potential regulations that would cause the resident to run into potential issues later on.
Having an HOA is very beneficial to residents in that there are standards set that help preserve property values and keep the neighborhood or condominium looking in perfect condition.
HOA vs PUD: What Are the Differences?
Distinguishing between HOA vs PUD can be quite confusing because on the surface they appear quite similar.
In a PUD, individual unit owners have ownership of their home, lot, and common area.
In a traditional HOA community, there may be several additional rules imposed that all residents are required to follow. In a community that has an HOA, there will be stricter regulations related to home exteriors, pet ownership, parking, or other specific regulations. The HOA rules are typically targeted at maintaining a certain uniformity and prestige to the community for preserving or increasing property values.
HOAs are typically run through a Board of Directors that is composed primarily of volunteers or any outside experts that are brought in on a case-by-case basis. The primary difference between HOA vs PUD is who owns the land on which the property sits.
PUDs offer a more traditional landowner rights structure than HOAs do, given that HOAs are imposing particular regulations on residents. When it comes to HOA vs PUD, you have a choice on how much regulation you want for your community.
How to Find Out Whether the Property You Are Interested In Is an HOA vs PUD?
Many inexperienced buyers are unsure of how to distinguish between an HOA vs PUD but are also unsure of how to find information about the neighborhood or condominium that they are considering purchasing property.
Usually, the best way to find out whether the property is a part of an HOA or PUD is to speak with your realtor or with the community association managing the community to request copies of their bylaws.
Normally, it is custom to present these documents during the processing of purchasing the property where the new prospective resident would need to sign documentation acknowledging the rules set out by the HOA or PUD. By looking at the bylaws, residents will be able to know exactly what is expected of them so that they can make an informed decision when deciding to purchase their upcoming property.
What Are the Pros & Cons of Living in a PUD?
One of the top benefits of living in a PUD is the convenience that it offers to its residents. Many PUDs have private amenities that go beyond the typical park, gym, or pool that most communities have. PUDs, for example, may have restaurants, a drug store, specialty shops, privately owned roads, and 24-hour security.
PUDs are ideal for residents that want everything in one place so that they are able to come home and hardly ever leave. While each PUD is different, there are certain PUDs that will have stricter rules than others. It is wise to investigate these regulations clearly in order to avoid surprises later on that could cause residents to incur more expenses or not be able to make particular amenities to their desired unit.
What Legal Restrictions Apply to PUDs & HOAs?
Depending on where your neighborhood or condominium is located, there are several potential legal regulations that the community will be required to follow.
These regulations are constantly shifting, and it is important for the team that is leading the PUD or HOA to always have a constant awareness of what the exact legal issues may be and whether any modifications need to be made.
Another important note related to HOAs and PUDs is that it is often quite difficult to modify the bylaws that were created when the community was built and their respective organizations were formed. However, if there was a major shift in local or state legislation, then it will be wise for the respective boards to assess whether it is time to amend the regulations, which can take a substantial period of time.
An example of regulations that are constantly shifting are those related to fire safety, public health, or natural disaster preparation. Community associations need to be constantly in compliance with these state or local regulations in order to avoid potential legal liability from residents in the long-term.
If board members are unsure of where to find information about potential shifts in regulations, it is wise to speak to an attorney that has particular expertise in dealing with real estate, HOAs, or PUDs.
It is also beneficial to speak to the local fire department in order to determine any recommendations from their specialized expertise.
HOA vs PUD: One Final Difference
When it comes to HOA vs PUD, we know how association management can make a huge difference. HOA management companies, like ours, have worked with HOAs throughout the country. We’ve had a lot of success stories when it comes to financially stable HOAs that make a difference in the lives of their residents. Want to learn more? Call us today, we’ll be glad to help.
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