In a planned unit development, how are ownership and common areas structured?

In a planned unit development (PUD), the structure of ownership typically involves individually owned units alongside jointly owned common areas. This means that each homeowner or unit owner possesses their individual property, which can include the interior and certain exterior aspects of their unit. At the same time, there are shared common areas, such as parks, pools, or clubhouses, that are collectively owned and maintained by all the residents in the development.

This setup promotes better community interaction while also allowing homeowners to have their private spaces. Property management of the common areas is usually governed by a homeowners association (HOA), which is responsible for the upkeep and maintenance of these shared facilities. Such a structure distinguishes PUDs from other residential types, where ownership may either cover everything collectively or not include shared spaces at all.