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74 property is actually vacant. Initially cheaper than polycarbonate clearboarding, plywood is easily broken into, deteriorates from weather conditions, and often has to be replaced three times or more. Fannie Mae's decision will likely be a catalyst that prompts the other GSEs and the industry in general to follow suit in 2017 and approve innovations that allow for the use of polycarbonate clearboarding. e implications of this change will be staggering even if only Fannie Mae participates; if others follow suit, the impacts will be exponentially more significant. Consider that 1.3 million homes in America remain vacant. e national foreclosure rate is 1 in every 1,526 housing units, according to RealtyTrac. As industry leaders embrace new technology, it will be possible to replace plywood with polycarbonate clearboarding, changing practically overnight the appearance of some of the most distressed neighborhoods across the country. Fannie Mae's pre-approval policy expansion takes effect this month. GAINING LEGISLATIVE SUPPORT Legislators from states and cities across the country are among those closest to witnessing the damage that unsecured and unsightly zombie properties exact on neighborhoods. Properties with plywood on them essentially scream that the neighborhood is in distress. Ohio is leading all states in its proactive approach to attacking community blight. First, it passed the most progressive fast-track foreclosure law in the country, which in effect can shorten the length of time a property sits vacant during a foreclosure process from two years or more to just six months. is greatly reduces the opportunity for adverse occupants and the chances of non-surchargeable damage. However, even more noteworthy is the measure Ohio Gov. John Kasich recently signed into law that bans plywood on vacant and abandoned properties. is bold law is the first of its kind in the United States and will have far-reaching implications. Most immediately, the law—which takes effect in March—will lead to far wider use of polycarbonate clearboarding in Ohio, which has the eighth-highest foreclosure rate in the nation, according to RealtyTrac. is significant advancement in state government's approach to eliminating plywood and fighting blight also should prove to be a model for states across the country. Similarly, though not as wide-reaching, cities such as Phoenix and Coachella, California, are embracing the use of clearboarding to improve the appearance and security of their struggling neighborhoods. Phoenix was well ahead of the curve and, in 2015, passed an ordinance requiring all window and door openings visible from the street to be secured with polycarbonate clearboarding if the structure had been vacant and abandoned for more than 90 days. In November, New York City lawmakers began review on a bill that would prohibit the use of plywood to secure vacant and abandoned buildings. Lawmakers clearly understood the simple yet direct connection between plywood and blight: "is bill would prohibit the use of plywood in sealing openings in vacant buildings," they wrote when filing the bill. "is prohibition is intended to prevent blight." is bill would set a foundational example at the local level for eliminating plywood in communities of all sizes. New York City's example would accelerate advocacy efforts for a progressive approach to blight remediation at all levels of government. THE TRUE COST OF FORECLOSURE Recently, Aaron Klein (no relation to the author) released a groundbreaking study quantifying for the first time the substantial and numerous impacts foreclosures and vacant and abandoned properties have on homeowners and their communities. Even based on conservative estimates, the typical foreclosed home imposes costs of more than $170,000, he wrote in his paper, "Understanding the True Costs of Abandoned Properties: How Maintenance Can Make a Difference." e former U.S. Treasury Department Deputy Assistant Secretary for Economic Policy examines three main areas in which foreclosures and vacant and abandoned properties adversely impact homeowners and their communities: property values, crime, and increased burden on city resources. Among the findings Aaron Klein cites: 1. e foreclosure of a home will cause a loss of value of at least $130,000 for the home and its neighborhood. 2. Over half the total cost of a foreclosure's impact on neighboring properties comes from the fact that the property is abandoned. 3. Vacant properties lead to increases in violent crime with substantial costs: $14,000 per vacant property per year in increased crime, translating into $795 million nationwide for all vacant properties. 4. e impact of vacancy on crime increases as the property stays vacant for longer periods, likely plateauing at between 12 and 18 months. 5. Vacant buildings are major fire hazards; vacant residential buildings account for one of every 14 residential building fires in America. Community Blight Solutions of Cleveland commissioned this study to help decision makers across the country better understand blight's true burdens. Klein concludes that how well a vacant home is secured can have a substantial impact on the total costs associated with that status. In a second study and paper to be released this month, Klein will examine the problems associated with plywood. His data will add to the growing evidence that plywood must be eliminated from vacant and abandoned properties and polycarbonate clearboarding should be used in its place. THE YEAR OF CLEARBOARDING For the first time in decades, the housing industry—and mortgage field services in particular—are now armed with the tools they need to seriously and effectively attack community blight. For too long, plywood has served as the standard material for boarding vacant and abandoned properties. It has become the ugly and stigmatizing symbol of a community in despair. Our laws and policies are now leaning toward a more proactive solution. We are beginning to replace outdated, unsightly, and inefficient plywood with modern-day technology in the form of polycarbonate clearboarding, but we have far to go. Advocacy efforts must continue at the national, state, and local levels. Progressive and effective policies must be adopted. It is clear that 2017 will be the year of polycarbonate clearboarding. Forward-thinking leaders in government and industry are embracing a more effective solution.

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