A planned unit development, or PUD, is a type of community development in which individuals own their own homes and lots while a homeowners association owns and maintains shared common areas such as parks, roads, pools, or clubhouses.
PUDs combine private ownership with communal amenities. Unlike a condominium, where owners share ownership of the building structure, PUD homeowners typically own their lot and dwelling outright and pay HOA dues that fund the shared spaces and enforce community rules through CC&Rs.
PUDs are a common structure for master-planned communities and many townhouse and single-family developments. Lenders classify PUDs distinctly, and buyers should review the association's dues, rules, and financial condition before purchasing.