HOA glossaryProperty & ownership

What is a planned unit development?

A development of individually owned lots plus shared common area administered by an association — the most common form of HOA community.

Also called: PUD

In a PUD the owner holds title to the lot and the structure on it, and the association owns or administers the shared land. Contrast with a condominium, where the owner holds an interest in a defined air space plus a percentage of the common elements.

The practical difference is the maintenance line. In a PUD the owner typically maintains their own roof, siding and yard unless the declaration says otherwise; in a condominium the association typically maintains the building envelope. Plenty of PUDs invert this for townhome-style construction, which is why the document controls rather than the label.

Lenders use the term as a loan classification too, which is why it turns up on mortgage paperwork and in questionnaires the association is asked to complete at closing.

Why it matters to a board

The PUD label tells a lender something and tells the board almost nothing. Read the declaration for the maintenance split.

Where the answer lives

Your recorded declaration and bylaws first, then the act that governs associations in your state. Whichever is stricter is the one that binds you.

Related terms

Condominium associationAn association governing a community where owners hold title to units and an undivided percentage interest in the common elements.Common interest communityA development where owning a lot or unit carries automatic membership in an association and an obligation to pay assessments.DeclarationThe recorded instrument that creates the community, submits the land to the association's authority, and defines what is common and what is owned.Common areaThe land and improvements owned or controlled by the association for the benefit of all members.
General information, not legal advice. This entry explains what the term means, not what your association must do about it. Any notice period, cure window, fine cap, vote threshold or deadline comes from your recorded declaration and your state's act — those differ in all fifty states and are amended every session. Updated August 2026. Confirm the current requirements with an attorney licensed in your state before acting.
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