When you’re house-hunting in the U.S., you’re likely to encounter terms like HOA vs PUD on listings. Both involve community rules and shared spaces, but they have key differences that affect how you live, how much control you have, and what you’re paying for. This planned unit development guide explains everything you need to know—without heavy jargon, with clear headings, bullet lists, real examples, and real-life considerations.
What Is an HOA?
A Homeowners’ Association (HOA) is a legal organization tied to a residential community. It:
- Sets rules (CC&Rs) about yard upkeep, exterior colors, parking, pets, noise, etc.
- Collects dues to maintain shared areas, manage services, and sometimes hire staff or contractors
- Is run by a volunteer (or professional) board elected by residents
Many neighborhoods, condos, and townhomes fall under HOAs—even areas that aren’t technically a PUD.
What Is a PUD?
A Planned Unit Development (PUD) is essentially a self-contained mini town—with mixed housing types and shared amenities. Key features include:
- Homes of various types—single-family, condos, townhomes
- Integrated commercial spaces like shops, gyms, and perhaps offices
- Parks, recreation, and paths, all maintained by a mandatory HOA
- Homeowners own both the structure and the land it sits on, unlike many condos.
PUDs are typically flexible in design and use, negotiated with local governments for mixed-use zoning .
Similarities: HOA vs PUD
| Checklist | HOA Communities | PUDs |
| Mandatory fees | ✅ | ✅ |
| Community rules | ✅ | ✅ |
| Maintenance of common areas | ✅ | ✅ |
| Governing Board | ✅ | ✅ |
Key Differences: HOA vs PUD
- Land Ownership
- In an HOA, members own the home but not common land
- In a PUD, you own your home and the lot it sits on, giving you more autonomy
- In an HOA, members own the home but not common land
- Mixed Uses & Amenities
- PUDs often include shops, offices, parks, recreation facilities—they operate like “mini-towns”
- Traditional HOAs tend to focus on housing-only developments
- PUDs often include shops, offices, parks, recreation facilities—they operate like “mini-towns”
- Zoning and Planning
- PUDs use flexible zoning negotiated with the city for mixed-use and open space
- HOAs must comply with standard residential zoning, not always offering integration with retail or parks
- PUDs use flexible zoning negotiated with the city for mixed-use and open space
- Autonomy & Customization
- HOA rules may limit yard maintenance, colors, or exterior changes—and these can be strict
- PUDs also have rules, but because you own your lot, sometimes there’s more flexibility—but still less than a non-HOA subdivision
- HOA rules may limit yard maintenance, colors, or exterior changes—and these can be strict
Pros & Cons: HOA vs PUD
HOA Communities
Pros:
- Maintained appearance and common areas
- Rules preserve house and landscaping standards
- Built-in governance and shared costs
Cons:
- Can be restrictive (colors, yard care, parking, pets)
- Fees vary—and late ones can lead to liens or foreclosure
- Variable board competence
PUD Communities
Pros:
- You own both home and land—greater investment equity
- Richer amenities: parks, pools, retail, even offices/restaurants
- Designed to foster community and convenience
Cons:
- Often higher HOA fees for more amenities
- Density and less privacy—houses may be close together
- Potentially restrictive rules around exterior usage or modifications
Tips to Evaluate HOA vs PUD Communities
- Review HOA Documents (CC&Rs, Bylaws, Rules)
- Check restrictions on home colors, yard structures, pet policies, rentals, parking, and architectural tweaks
- Check restrictions on home colors, yard structures, pet policies, rentals, parking, and architectural tweaks
- Compare HOA Fees
- Fees can range from $150 to $1,000+ a month—know what’s covered (landscaping, pool, security, retail maintenance)
- Fees can range from $150 to $1,000+ a month—know what’s covered (landscaping, pool, security, retail maintenance)
- Visit the Place
- Walk the streets. Is it tight-knit or crowded? Are parking rules followed? Does the place feel comfortable?
- Walk the streets. Is it tight-knit or crowded? Are parking rules followed? Does the place feel comfortable?
- Understand Amenities
- Are amenities easily accessible? Are they maintained well? Is their vibe consistent with your lifestyle?
- Are amenities easily accessible? Are they maintained well? Is their vibe consistent with your lifestyle?
- Check Governance
- Is the board professional or volunteer-run? Are meetings transparent? What’s the process for joining?
- Is the board professional or volunteer-run? Are meetings transparent? What’s the process for joining?
- Look at Resale Value
- PUDs can help maintain value thanks to planned amenities and walkable designs—but strict rules can limit buyer appeal later
- PUDs can help maintain value thanks to planned amenities and walkable designs—but strict rules can limit buyer appeal later
- Privacy & Density
- PUDs often have smaller lots and less yard space—consider how this affects your privacy
- PUDs often have smaller lots and less yard space—consider how this affects your privacy
- Legal & Mortgage Info
- PUDs are viewed as primary homes by lenders (Fannie Mae) if HOA dues are mandatory and shared areas are maintained
- PUDs are viewed as primary homes by lenders (Fannie Mae) if HOA dues are mandatory and shared areas are maintained
Real-Life Scenarios
- Suburban Townhome (HOA): Lower monthly fee (~$200), strict exterior color controls, quiet neighborhood, but no parks or walkable zones.
- PUD in a New Development: Owners pay ~$500/month, enjoy pool, gym, playground, and walks to a coffee shop—but privacy is reduced and you’re expected to comply with design standards (e.g. no visible trash bins).
- Mixed-Use PUD Downtown: Condo owners own land, walk to retail, flexible usage, but fees and parking charges are significantly higher.
Final Thoughts: Which Is Right for You?
Choose an HOA community if you:
- Want low-cost, quiet neighborhood living
- Prefer fewer amenities
- Don’t mind simple design rules
Choose a PUD community if you:
- Value owning your land
- Want access to amenities like shops, parks, or gyms nearby
Enjoy planned community living and can handle the costs and rules