Planned Unit Development

By: J. David Chapman/April 14, 2022

For decades municipalities have struggled with innovation in development. Developers are constantly pushing the limits of existing codes. Most developers have felt at least a bit of frustration when implementing creative ideas that builders and customers require or desire with the rules, ordinances, and codes. Frankly, even the planners and planning departments of these municipalities are frustrated trying to make good projects comply with existing rules, ordinances, and codes. It is particularly irritating when a city has one set of codes and very different needs in different parts of the city. Urban projects have a tough time complying with code created for suburban development and require several variances to proceed.

There are a few tools that planning departments and developers have at their disposal. The first is going to the planning commission and city council for variances to the code to allow for the project to proceed. The second is filing a Planned Unit Development, or PUD, document to have the project approved with the variances. The last is for the municipality to create “overlay” districts creating different and separate codes for an area of town.

The most widely used solution is the Planned Unit Development, or PUD. They may be used to permit new or innovative concepts in land utilization, master-planned communities, or mixed-use developments that other districts do not easily accommodate. A PUD also provides site-specific compatibility standards. While greater flexibility is given to allow special conditions or restrictions that would not otherwise allow the development to occur, procedures are established to ensure against misuse of increased flexibility. PUDs also benefit the municipality by allowing the planners, commissioners, and city council to negotiate certain items they want to see in the development.

We have seen an increase in the implementation of PUDs in response to both the lack of aesthetic variation among suburban homes and the increasing need for higher suburban density to accommodate rising population sizes. PUDs have been effective tools in combining separate land uses on large-scale suburban developments, while preserving valuable open space and suburban aesthetics.

Generally, PUDs require a fairly complicated and lengthy approval from the municipal government including, and beginning with, the submission of an application for master plan review with the planning department. This should be expected because these developments can have a huge positive impact of the community if done correctly; however, they must be carefully considered.

J. David Chapman is professor of finance and real estate at the University of Central Oklahoma (jchapman7@uco.edu).