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75 Given these difficult economic times, the U.S. could quickly see 6.4 million properties (incudes single-family to four-plex, and mobile homes from U.S. Census data) that could be vacant and abandoned during the next 12 months. Unemployed investors, or those unable to collect rent due to the CDC, state, and federal moratoriums on evictions, may not have the available capital to cover turn-over expenses. Tenant qualifying ratios will be hard to meet, with some economists predicting that 1:4 or 1:5 Americans in the workforce could become unemployed as a result of COVID-19. e Federal Housing Finance Agency, which provides oversight for Fannie Mae and Freddie Mac, announced new inspection requirements regarding CARES Act forbearances. ey issued directives to banks and servicers stating that monthly occupancy inspections should no longer be done on any property under forbearance that is not already known to be vacant. ey will also not reimburse for inspections. With banks and servicers already having liquidity challenges, they do not have the extra financial resources to absorb these much- needed inspections. e anticipated abandoned and blighted properties will be left to neighborhoods to deal with. It will put added burdens on communities to take care of issues themselves. With governments already feeling the economic hardships of COVID-19, they will not have the additional resources needed to keep these properties safe, sound, secure, and sanitary. Additionally, the risk of failing to provide routine occupancy inspection oversight could be dire and will negatively impact the investor's portfolios. For instance, many forced place hazard insurance policies may not pay out for theft, vandalism, and surchargeable damage, if vacancies are not properly identified quickly. Property values will likely depreciate. Property-related crime is expected to increase, and includes heating, ventilation, and air conditioning (HVAC) and copper wiring and plumbing theft, appliances and fixture theft, as well as vandalism. ese unmonitored assets also create a higher risk for health and safety concerns, such as unsecured swimming pools, that could result in loss of life. Unnoticed roof damage and exposure to the elements can cause major water damage, including mold, which can cost tens of thousands of dollars to remediate. Investors may also have to deal with increased code violations and daily penalty fees for failure to promptly rectify. To ensure properties are not abandoned and at risk to cause community blight, all investors, including the Federal Housing Administration (FHA), who has 41.6% of all seriously delinquent mortgages, should seriously consider putting strategies together to include a "risk- based" inspection cadence for high-risk assets. Without these precautions, all of us will have to live with the consequences, and the communities most in need, will pay the highest cost. Denia Ray is EVP at MSI, an Insight One Solutions Company. From owning her own business, obtaining numerous prime HUD contracts, and running a $335 million publicly traded company, Ray constantly challenges the status quo. Ray was instrumental in launching the nation's first centralized single-family rental platform in 2009. She also ran HUD management and marketing contracts and national property preservation companies. Ray brings 25-plus years' experience in the government contracting realm. HUD'S JULY 2020 HOUSING INDICATOR REPORT SHOWS:

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