CLEVELAND, Feb. 14, 2017 /PRNewswire/ -- A new study released today from a former U.S. Treasury Department official presents groundbreaking analysis that demonstrates substantial advantages to using clearboarding rather than plywood to secure vacant and abandoned properties.
"Curing Community Blight: A Cost-Benefit Analysis of Clearboarding versus Plywood to Secure Vacant and Abandoned Properties" quantifies that even under the most conservative assumptions, using polycarbonate clearboarding could provide a positive return of 34:1 to communities by maintaining property values and reducing crime.
To view the full report, commissioned by Community Blight Solutions and its Founder & Chairman, Robert Klein, click here.
"New technologies that can better secure vacant properties will reduce crime, maintain property values, and lower costs for city halls across the country," Robert Klein said. "Now, for the first time, the mortgage servicing industry has access to data and analysis that indicates the remarkable return property owners and communities receive when using alternatives to plywood such as clearboarding."
To appreciate the sizeable economic benefits of this new technology, property owners and community leaders must recognize both the upfront investment and long-term benefits associated with polycarbonate clearboarding, according to Aaron Klein, former Treasury Department Deputy Assistant Secretary for Economic Policy. (Aaron Klein is not related to Robert Klein.)
For instance, using clearboarding increases the total property values of a median foreclosed home and all neighboring homes by $13,000 to $57,000, while the marginal cost for using an alternative technology such as clearboarding is under $1,000.
In addition, plywood is easily damaged and often must be replaced at least once while the property sits vacant. When this factor is taken into account, the upfront investment differential shrinks to around $500. In addition, substantial benefits result from reduced crime and arson. In fact, the economic benefits from reduced crime and fire per year are between eight and 24 times greater than the upfront cost differential, Aaron Klein wrote.
"It is clear why communities from California to North Carolina are beginning to employ this new technology rather than traditional, outdated methods to secure vacant property and combat blight," Aaron Klein said.
Among Aaron Klein's other findings:
- Using an alternative to plywood such as clearboarding for a single home could result in total net benefits on the order of $17,000 to $70,000 for an average community.
- The holistic cost benefit ratio of switching from plywood to clearboarding ranges from a conservative estimate of 34:1 to a potential savings of 140:1.
- Using clearboarding instead of plywood could increase property values by 0.2% throughout an affected neighborhood, which usually extends at least 1/8 of a mile from a vacant property, potentially further, depending on the layout of the community.
In 2016, the state of Ohio passed HB 463, which prohibited the use of plywood to secure vacant and abandoned properties. Earlier in the year, Fannie Mae expanded its regulations to include polycarbonate clearboarding as a reimbursable solution. Aaron Klein recommended that this national movement toward clearboarding's use be accelerated.
"Rules or regulations that restrict choices and require plywood boarding should be altered to allow for clearboarding," he said. "Municipalities and governments can also demonstrate their support by applying polycarbonate to their abandoned properties.''
This is Aaron Klein's second white paper in as many months that applies unique analytics and analysis to the national fight to preserve neighborhoods. In January, Aaron Klein published data that for the first time showed the direct link between property preservation, property values and a reduction in crime. Click here to review his paper, Understanding the True Costs of Abandoned Properties.
"In the year 2017, we now have the technology and the analytics to make a dramatic shift in the strategies we employ," said Robert Klein. "It is my hope that those dedicated to eliminating community blight join me in applying this data in our work."
About Community Blight Solutions
Community Blight Solutions is focused on understanding, solving and eliminating the problems associated with the blight that is plaguing communities nationwide. Community Blight Solutions works closely with mortgage servicers, local government officials, legislators and policymakers at the Federal and State level, first responders and other groups to advocate for updates and changes to policy and legislation and an increase in awareness of the issues contributing to community blight. For more information, go to http://www.communityblightsolutions.com/
About Robert Klein
Robert Klein is a successful entrepreneur and over the past 25 years, he has earned a reputation as a pioneer and innovator in the property preservation industry and strong advocate for eliminating blight in communities across the country. Klein is the Founder and Chairman of Safeguard Properties, Community Blight Solutions and SecureView, all based in Cleveland. Klein is a frequent speaker at field service industry conferences.
About Aaron Klein
Aaron Klein previously served as the Deputy Assistant Secretary of the U.S. Treasury Department for Economic Policy and Chief Economist of the U.S. Senate Banking, Housing, and Urban Affairs Committee. With over a decade of senior-level experience, Klein is a leader in the field of housing and finance policy and has served as a consultant and economist in providing expert analysis and innovative solutions.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/new-study-finds-that-clearboarding-is-more-cost-effective-than-plywood-in-fighting-community-blight-300406993.html
SOURCE Community Blight Solutions