From the NY Times:
New York City will spend $24 million in federal financing to rehabilitate and resell 115 foreclosed homes, one of the most aggressive steps in recent years that city officials have taken to prevent the vacant properties from becoming a blight on neighborhoods, Mayor Michael R. Bloomberg announced on Wednesday.
The city will use the money to take control of so-called real estate-owned homes, or foreclosed properties owned by banks that have failed to be sold at auction. The city has already bought the first four homes — two on Staten Island, one in the Bronx and one in Queens.
City Has Plan to Resell Foreclosed Homes
“What we’re trying to do is to not acquire a lot of land and properties and have it just sit there,” Mr. Bloomberg said. “What we’re trying to do is get it in, fix it up and get it back off our books into the private sector. It doesn’t do us any good if we’re holding it. You can’t house anybody. And it doesn’t generate tax revenues. We don’t want to make the mistakes that we had in the past.”