In a PUD project, it holds title to the common elements.homeowner's insuranceAn insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.homeowner's warrantyA type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air conditioning, should they break down within the coverage period.

Hi All - I recently saw a lot in my neighborhood hit the market BUT my mortgage guy said he can't finance it because there is no dwelling on it.

We currently own one single family dwelling renting for 1.79% of the purchase price and another that was going to be used as a rental but after digging into some unforeseen repairs, we are looking at flipping and using the money to either purchase a new rental or pay off the first home outright and be free and clear. 

For example buying an older Bungalow with minimal improvements and adding  a secondary dwelling.

As a realtor I just dwell on real estate.

Also you probably want to work with an architect who has ADU experience I can recommend one if you want.Here is a recent article with more information: http://www.sfexaminer.com/city-easing-onerous-approval-process-accessory-dwelling-units/

@Alicia Gates(SFRs). [24 CFR §110.10(b)](b) This part shall not require posting and maintaining a fair housing poster:(1) On vacant land, or(2) At any single-family dwelling, unless such dwelling(i) Is being offered for sale or rental in conjunction with the sale or rental of other dwellings in which circumstances a fair housing poster shall be posted and maintained as specified in paragraph (a)(2)(ii) of this section, or(ii) Is being offered for sale or rental through a real estate broker, agent, salesman, or person in the business of selling or renting dwellings in which circumstances a fair housing poster shall be posted and maintained as specified in paragraph (a)(1) of this section,

One recorded eviction on their state record and they'll never rent a dwelling again significantly better than a cardboard box.That being said, there's ALWAYS A risk in these cases.

The subject must be a single family dwelling.

A landlord must follow the requirements of the Eviction Law and cannot refuse to renew a lease without good cause (See Causes for Eviction), except in the case of owner-occupied two and three family dwellings, transient or seasonal tenants."