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When buying a home in Texas, you may encounter terms like Planned Unit Development (PUD), condominium (condo), and homeowners association (HOA). These aren’t just buzzwords in listings—they describe very different ways of owning and maintaining a property.
Each type of community affects what you own, what you’re responsible for maintaining, and how much independence or shared management you’ll have. Understanding these differences helps homebuyers make confident decisions and avoid surprises after closing.
What Is a Planned Unit Development (PUD)?
Definition and How PUDs Work
A Planned Unit Development (PUD) is a master-planned community designed to include a mix of housing types—and sometimes small commercial spaces—under one coordinated plan. In a PUD, homeowners own both their home and the land beneath it, similar to a traditional single-family property.
However, PUD residents also share ownership of common areas such as parks, private roads, or recreation centers through a homeowners association (HOA). The HOA maintains these shared spaces, enforces community rules, and ensures a consistent neighborhood appearance.
Common Amenities and Features
Common features of PUDs in Texas include:
- Clubhouses, pools, and tennis courts
- Walking trails and community parks
- Private roads and landscaped entrances
- Small commercial areas like cafés or offices
- Neighborhood events or recreation areas
These amenities are maintained by the HOA and funded through monthly or quarterly assessments.
Pros and Cons of PUD Ownership
Pros:
- Homeowners own their home and land, offering independence and flexibility.
- Shared amenities enhance community appeal and property value.
- Consistent standards preserve neighborhood aesthetics.
Cons:
- HOA fees for shared spaces and amenities.
- Must follow HOA rules for property design or landscaping.
- More individual upkeep compared to condo living.
What Is a Condominium (Condo)?
Definition and Ownership Details
A condominium is a form of ownership, not a building type. Condo owners hold title to the interior of their unit only, while the structure, exterior, and land are jointly owned by all residents through a condominium association (not an HOA).
The association is responsible for maintaining shared property, enforcing community rules, and managing insurance and finances. Condos in Texas can range from urban high-rises to townhome-style developments.
Fees, Rules, and Maintenance Responsibilities
Monthly dues in a condo community usually cover building insurance, exterior and roof maintenance, landscaping, utilities for shared spaces, management services, and reserve funds for major repairs. Homeowners are responsible for maintaining their interiors and carrying personal property insurance.
Pros and Cons of Condo Living
Pros:
- Minimal personal maintenance; most upkeep handled by the association.
- Access to private amenities such as pools, gyms, or lounges.
- Ideal for buyers seeking convenience and lower individual responsibility.
Cons:
- Higher monthly dues than HOAs or PUDs.
- Limited freedom to modify exteriors or structural elements.
- Community rules may restrict rentals or renovations.
What Is a Homeowners Association (HOA)?
Role of HOAs in PUD and Condo Communities
An HOA is a governing organization that enforces rules, maintains shared spaces, and supports community operations. Most PUDs and single-family neighborhoods in Texas are governed by HOAs.
Condo communities, on the other hand, are managed by condominium associations, which serve a similar purpose but are established under different laws. Both types of associations ensure the community is well maintained, financially stable, and compliant with local regulations.
HOA Fees, Rules, and Governing Documents
All community associations—whether a homeowners association or a condominium association—operate under key governing documents. These include Covenants, Conditions & Restrictions (CC&Rs) or a Declaration of Condominium, which define ownership rights and use restrictions; Bylaws, which outline board operations and voting rights; and Articles of Incorporation, which formally establish the association as a legal entity.
These documents define what dues cover, how rules are enforced, and how architectural changes are approved. In Texas, HOAs and condominium associations fall under different sections of the property code, but both rely on these documents to maintain structure and accountability.
Pros and Cons of HOA Communities
Pros:
- Well-maintained environments that protect property values.
- Shared costs for amenities and maintenance.
- Professional management provides organization and structure.
Cons:
- Mandatory dues and possible special assessments.
- Rules may limit certain property uses or designs.
- Community satisfaction depends on active, informed board leadership.
PUD vs Condo: Main Differences
Land Ownership and Lot Structure
The biggest difference between a PUD and a condo lies in ownership. In a PUD, homeowners own both the home and the land beneath it. In a condo, ownership is limited to the interior of the unit, while the land and building structures are jointly owned by the association.
Insurance and Maintenance Responsibilities
Insurance and maintenance responsibilities also differ. PUD homeowners typically purchase a standard homeowners insurance policy that covers their home and land, while the HOA insures only the shared spaces. Condo owners rely on a master insurance policy held by the association that covers the building exterior and common areas, and they maintain personal policies for the interiors and their belongings.
Costs, Flexibility, and Lifestyle Impact
Condos usually have higher monthly dues since more services are covered, while PUDs have moderate fees and more owner responsibility. Condos suit those who value convenience and less maintenance. PUDs appeal to buyers who want more autonomy, land ownership, and a balance of private and shared spaces.
PUD vs HOA: Key Differences Explained
HOA Governance in PUD Communities
Every PUD includes an HOA, but not every HOA governs a PUD. The HOA enforces community standards, maintains shared assets, and oversees vendor contracts, while homeowners retain control over their own property and land.
Legal, Zoning, and Financial Differences
A PUD is a zoning designation approved by local authorities that defines how land is developed and used. An HOA is a corporate entity that manages day-to-day operations, enforces rules, and handles finances. The PUD sets the physical design; the HOA governs the people and property within it.
Overlap and Distinct Responsibilities
While they often operate together, PUDs and HOAs serve different purposes. The PUD describes the type of community, and the HOA describes the organization that manages it. Together, they create organized, attractive, and well-maintained neighborhoods that preserve property values over time.
How to Choose Between a PUD, Condo, or HOA Community
Key Considerations for Homebuyers
Choosing the right community depends on your lifestyle, budget, and how much maintenance you want to handle yourself. Condos are best for homeowners who prefer low-maintenance living with shared amenities. PUDs are ideal for those who want land ownership but still enjoy the benefits of a managed community. Single-family HOA neighborhoods work well for homeowners who want a more traditional ownership experience with fewer shared costs.
Evaluating Costs, Autonomy, and Amenities
Each type of community comes with its own financial and lifestyle balance. Condos tend to have higher fees because the association manages everything from exterior maintenance to insurance. PUDs have moderate fees, covering shared spaces but not individual properties. HOA neighborhoods typically have the lowest dues, since homeowners maintain their own homes and yards.
In terms of autonomy, condo owners have the least independence, PUD owners have a balance of control and support, and homeowners in single-family HOA communities have the most traditional ownership experience—full control over their property with light association oversight.
Questions to Ask Before Purchasing
Before closing on a home, ask questions like:
- What areas am I responsible for maintaining?
- How much are monthly HOA or condo dues?
- What amenities are included, and how are they funded?
- How are community rules enforced?
- What role does the management company play?
Knowing the answers helps you avoid surprises and understand exactly what kind of ownership experience you’re choosing.
Why Choose RISE for HOA and Condo Association Management
At RISE Association Management Group, we help Texas communities—whether condominiums, PUDs, or traditional HOA neighborhoods—thrive through expert management and proactive support. Our team combines local experience with transparent communication and technology-driven service.
We provide:
- Proactive inspections and vendor oversight
- Transparent budgeting and financial reporting
- Board education and leadership support
- Community engagement through our Thrive Program
- Real-time updates through the RISE App
Our mission is simple: to help HOA boards, condo associations, and homeowners build well-managed, connected communities that stand the test of time.
Get expert HOA and condo association management from RISE.
FAQs
What is the difference between a PUD and a condo?
The key difference lies in ownership and maintenance. In a PUD, homeowners own both their home and the land beneath it, similar to a traditional single-family property, while sharing community-maintained spaces such as parks or roads. In a condo, owners hold title only to the interior of their unit, and all land and building exteriors are collectively owned by the condominium association.
This affects insurance and responsibilities: PUD owners handle their own home upkeep and exterior maintenance, while condo owners rely on their association for most exterior repairs and insurance. PUDs offer more independence; condos offer more convenience.
Do condos have HOAs?
Not technically. Condos are governed by condominium associations, which serve a similar role to HOAs but operate under the Texas Condominium Act rather than the HOA statute. Condo associations manage shared property, collect dues, and enforce rules just like HOAs, but the ownership structure is different.
If you see a listing that says “condo with HOA,” it typically refers to the condo association that handles those responsibilities.
What’s the difference between a PUD and an HOA?
A PUD refers to a type of development or community layout, while an HOA refers to the organization that manages and enforces the community’s rules. Every PUD includes an HOA, but not every HOA governs a PUD.
For example, a PUD may include homes, condos, or even commercial spaces, while a traditional HOA typically governs single-family neighborhoods. The HOA within a PUD ensures consistent maintenance and handles financial and operational duties on behalf of owners.
Which type of community has the lowest HOA fees?
Generally, single-family HOA neighborhoods have the lowest fees because homeowners maintain their own homes and yards. PUDs often fall in the middle since the HOA maintains shared spaces but not individual properties. Condos tend to have the highest dues because the association manages exteriors, structures, and amenities.
Always review the community’s budget and governing documents before buying to understand exactly what’s covered by your dues.
Which option is best for me as a homebuyer?
It depends on your priorities. Choose a condo if you want low maintenance and shared amenities, a PUD if you want land ownership with some shared community features, or a traditional HOA neighborhood if you prefer full home and land ownership with light association oversight.
The right choice depends on your lifestyle, desired level of responsibility, and budget. Reading the community’s rules and asking questions before purchase ensures you choose the environment that fits you best.
