Planned Development
Also known as: PD, PUD
A planned development is one of the four types of common interest developments recognized under California Civil Code Section 4175. In a planned development, each owner holds fee simple title to their individual lot — including the land and the structure on it — while shared common areas such as streets, parks, pools, clubhouses, and landscaped medians are owned and maintained by the homeowners association. This ownership structure distinguishes planned developments from condominiums, where owners hold title to an airspace unit rather than the underlying land. Planned developments are the most common CID type in California, encompassing single-family home communities, townhouse developments, and mixed-use projects. Because owners own their lot outright, they typically have more autonomy over modifications to their home and yard than condominium owners, though the CC&Rs and architectural guidelines still impose restrictions on exterior changes, landscaping, and additions. The association collects assessments to maintain the common areas, fund reserves, and provide community services such as landscaping, security, and amenity upkeep. From a governance perspective, planned developments follow the same Davis-Stirling Act requirements as other CIDs for elections, meetings, financial disclosures, and dispute resolution. Buyers sometimes confuse planned developments with planned unit developments (PUDs), a zoning designation used by local governments — the two concepts overlap but are not identical.
Example in Context
The 120-lot single-family community was organized as a planned development, meaning each homeowner owned their lot and home outright while the association maintained the community pool, park, perimeter landscaping, and private streets using monthly assessments.
Frequently Asked Questions
What is the difference between a planned development and a condominium in California?
The key difference is what you own. In a planned development, you own the lot and the structure on it in fee simple — you own the dirt. In a condominium, you own the airspace within your unit boundaries, and the building structure, roof, and exterior walls are common area owned collectively by all owners. This affects maintenance responsibilities, insurance, and the scope of modifications you can make without HOA approval.