Attached Pud Form – Fill Out and Use This PDF

1.Is the project any of the following: manufactured home, houseboat, timeshare or segmented ownership, non-conforming zoning, “Own-Your-Own” or project owned as tenants-in-common, project of multi-unit properties, condotel, live- work condo, resort condominium, an investment ownership, or project with businesses owned or operated by the HOA (restaurant, spa, health club, etc.)?

Does the project exhibit any of the following?

Yes

No

1.b Do the bylaws, CC&Rs, or the HOA allow short-term and seasonal rentals (periods of less than one month), or fractional or time-share ownership

1.c Does the HOA budget include items that suggest hotel-type features, such as housekeeping costs, business income, membership fee income, personnel costs (lifeguard, maid, concierge, front desk, shuttle service, internet service fees, etc.)?

Yes

Yes

No

No

2. Association Litigation: There is no pending litigation. Note: Projects where the homeowners association is named as the plaintiff in a foreclosure action or as a plaintiff in an action for past due homeowners’ association dues are not considered ineligible projects.

3. The title to the units is held in Fee Simple.

4. The Project meets the insurance requirements as indicated below:

The same type of hazard and flood insurance that is required for a single- Family dwelling is required for each individual PUD unit. If hazard and flood Insurance for the PUD unit is included under the project’s master policy, a copy of the master policy must be provided to show the unit is covered and that the coverage is still in effect.

When a first mortgage is secured by a unit in a PUD project, and the legal Documents for the project allow for blanket insurance policies to cover either

Yes (no pending litigation)

No

Yes No

Yes No

(1)the common elements or (2) both the individual units and the common elements, the lender must verify that the homeowners’ association is maintaining a “master” or “blanket” policy that provides for premiums to be paid as a common expense.

The insurance policy must at least protect against fire and all other hazards that are normally covered by the standard extended coverage endorsement, And all other perils customarily covered for similar types of projects, including Those covered by the standard “all risk” endorsement. If the policy does not Include an “all risk” endorsement, Fannie Mae will accept a policy that includes The “broad form” covered causes of loss. The policy must meet the Requirements described below:

PUD Common Elements – The homeowners’ association must maintain a Property insurance policy, with premiums being paid as a common expense. The policy must cover all of the common element buildings and any other Common property except for those that are normally excluded from coverage, Such as land, foundation, excavations, etc. Fixtures and building service Equipment that are considered part of the common elements, as well as Common personal property and supplies, should be covered. The policy must Show the homeowner’s association as the named insured.

Individual Units - Individual insurance policies are also required for each unit mortgage in a PUD project. If the project’s legal documents allow for blanket Insurance policies to cover both the individual units and the common elements, Fannie Mae will accept the blanket policies in satisfaction of its insurance requirements for the units.

Special Endorsements

○Inflation Guard Endorsement, when it can be obtained.

○Building ordinance or Law Endorsement, if the endorsement of any building, zoning, or land-use law results in loss or damage, increased cost of repairs or reconstruction, or additional demolition and removal costs. (The endorsement must provide for contingent liability from the operation of building laws, demolition costs, and increased costs of reconstruction.), and

○Steam Boiler and Machinery Coverage Endorsement, if the project has central heating or cooling. This endorsement should provide for the insurer’s minimum liability per accident to at least equal the lesser of $2MM or the insurable value of the building(s) housing the boiler or machinery).

Liability Insurance

$1 Million

Fidelity Insurance

Not required

5.

Has control of the Homeowners Association been turned over to the unit owners?

Yes

If the answer to #5 is YES, skip to #8, if the answer is NO, 6 and 7 must be answered.

6.	If the answer to #5 is NO, are all homes in the project on-unit properties?	Yes
7.	All of the following are correct:	Yes

● At least 50% of the total units in the project (or legal phase) have been conveyed, or are under contract to, unit purchasers. In addition, the project contains enough sold units to support the responsibilities of the homeowners association.

● The project was not created by the conversion of existing buildings into a planned unit development.

● All common area improvements in the project or subject phase (other than greenbelts, private streets, and parking areas) are complete.

● Unit purchasers will have the sole ownership/interest in, and the right to use the project’s facilities once control of the homeowner’s association has been turned over to them.

● The projects budget provides for replacement reserve funds that are consistent with the responsibilities of the homeowner’s association.

Homeowner’s Association contact information:

●Name:

●Title & Organization or Company Name:

●Phone:

●E Mail:

No

No No

8.Underwriter has completed an Internet search on the project name as well as the project address, and has found no indications of offerings for nightly or short-term rentals (Question 1.a)

9.If the project is near water, snow or a recreation area, the bylaws and CC&Rs do not allow short-term rentals, and the budget shows no hotel-like Income or expense items. (Question 1.b and 1.c)

To be completed by TMS underwriter:

Yes

Yes

N/A

No

No