Fannie Mae Selling Guide B4-2.3-01 — Eligibility Requirements for Units in PUD Projects

Fannie Mae Selling Guide B4-2.3-01 — Eligibility Requirements for Units in PUD Projects

Effective 2026-08-05 · publisher's stamp for this provision

B4-2.3-01, Eligibility Requirements for Units in PUD Projects (08/05/2026) Introduction This topic contains information on PUD projects, including: PUD Project Requirements Eligibility Requirements for Units in PUD Projects Uniform Appraisal Dataset (UAD) 3.6 Policy PUD Project Requirements For a project to qualify as a PUD, all of the following requirements must be met: each unit owner’s membership in the HOA must be automatic and nonseverable, the payment of assessments related to the unit must be mandatory, common property and improvements must be owned and maintained by an HOA for the benefit and use of the unit owners, and the subject unit must not be legally created as part of a condo or co-op project. Zoning is not a basis for classifying a project or subdivision as a PUD. Units in projects or subdivisions simply zoned as PUDs that include the following characteristics are not defined as PUD projects under Fannie Mae’s policies. These projects have no common property and improvements, do not require the establishment of and membership in an HOA, and do not require the payment of assessments. Fannie Mae classifies PUD projects as either Type E—established PUD projects in which the developer has turned over voting control of the HOA to the unit purchasers. Type F—new PUD projects in which the developer has not turned over voting control of the HOA to the unit purchasers. Certain PUD projects require submission to PERS. See B4-2.2-04, Project Eligibility Review Service (PERS) for additional information. New or established PUD projects consisting of single-section and/or multi-section manufactured homes not subject to a community land trust, ground lease, or shared equity arrangement may be reviewed in accordance with B4-2.1-02, Waiver of Project Review. Note: Manufactured homes with resale restrictions must meet the resale restriction requirements in Section B5-5.2, Loans with Resale Restrictions. Eligibility Requirements for Units in PUD Projects Lenders must determine that the PUD project and subject unit meet the requirements described in Requirements Applicable to All Properties in a Condo, Co-op, or PUD Project in B4-2.1-01, General Information on Project Standards. Note: Any unit legally created as part of a condo or co-op project located within a larger PUD project or master association must meet the applicable requirements for condo or co-op projects. For additional information applicable to PUD projects subject to a ground lease, see B2-3-03, Special Property Eligibility and Underwriting Considerations: Leasehold Estates. Uniform Appraisal Dataset (UAD) 3.6 Policy Lenders using UAD 3.6 must follow the requirements in the UAD 3.6 Policy Supplement. The table below provides references to the Announcements that are related to this topic.

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