Housing Co-operative Model

If it were left to me, I would take the bailout money and form a new secretariat and call it Public Housing. I would find someone, like Ralph Nader, to set up local bodies in each area affected by high foreclosures. Homeowners would have the option of joining up or not. The mandate would be this:

1. Re-value houses in foreclosure, or in danger of foreclosure, to establish their real worth.
2. Purchase them using TARP monies.
3. Establish a monthly housing charge, based on the cost of renting those properties in their respective marketplaces. (ie. draw a 10 mile radius around the house and average out the rent for a similar property)
4. Offer the previous owners right of tenure in those homes based on a contract requiring upkeep, taxes, and regular payments. (In some communities, say Detroit, these housing charges could be geared to income)
5. These neighborhoods could be organized into corporate bodies, where members would have an equal vote, elect officers, and conduct their business.
6. When the housing charge contribution reaches a 20% percent equity with respect to each home, then members can purchase their homes at 0% down and take back possession.

Something like this makes sense to me. What do you think?