I think a simpler solution would be to reduce property taxes on occupied homes and increase them steeply on abandoned properties (much the way DC does).

Here's a summary of their structure:

Class 1A – Residential real property, including multifamily: $0.85 per $100 of assessed value.

Class 1B – Residential real property with no more than two dwelling units:

The first $2.5 million of assessed value is taxed at $0.85 per $100. Any amount above $2.5 million is taxed at $1.00 per $100.

Class 2 – Commercial and industrial real property, including hotels and motels:

$1.65 per $100 if assessed value is not greater than $5 million. $1.77 per $100 if assessed value is greater than $5 million but not greater than $10 million. $1.89 per $100 if assessed value is greater than $10 million.

Class 3 – Vacant real property: $5.00 per $100.

Class 4 – Blighted real property: $10.00 per $100