I approve of this: City Launching Plan to Turn Unfinished Condos Into Subsidized Housing:

The city is launching a $20 million initiative to restart stalled condo projects, turning some of the unfinished developments into below-market-rate housing. Details are still hazy, but Council Speaker Christine Quinn and the commissioner of the Department of Housing Preservation and Development, Rafael Cestero, said Wednesday that the city would solicit proposals from developers and lenders by the end of July.
The target is 400 units, meaning that the average subsidy of the apartments—which are designed to be for moderate- and middle-income families—would be about $50,000, well below the typical level usually doled out for new subsidized housing construction in the city.
Scores of condo sites in the city have stalled amid the economic crisis, and the concept in the plan is to find a way to offer enough incentive to restart them. The developer would commit to leaving a number of its units as affordable for moderate- and middle-income families; in return, the developer gets the subsidy and is also promised a buyer or a rent stream (unlike luxury condos, there is still demand for subsidized housing).

This is excellent, with the caveat that developers (who we all love to hate) will be getting more or less a bailout.
However, this is minor (and we need to grit our teeth) to the status quo: empty holes or half-finished buildings dotting the landscape and the construction industry left idle costing jobs. Creating moderate- and middle income housing, a socially just way to keep the middle class in New York City, is also a handy way to stimulate the local economy. I would also suggest that the city should underwrite the loans to the moderate- and middle-income families as well who will populate these condos.
Attacking the supply issue (not enough homes for the middle class), creating a stimulative system is perfect for satisfying the demand of housing in New York City.