From the NY Post:
Hundreds of buildings seized by the city for unpaid taxes and turned over to low-income tenants and nonprofit groups decades ago are now in default, leaving taxpayers on the hook for $100 million, according to city officials.
"It's just a huge ongoing problem," Mark Page, the city's budget director, conceded at a City Council hearing last week.
He said the city is in a bind because it doesn't want the buildings back and hasn't had much luck collecting from poor tenants with limited assets.
"In theory, we could take the building because they haven't paid their taxes. But then what does that do for us?" he said. "It's full of tenants and then what do you do?"