With the city’s real estate market already struggling, state leaders spent Tuesday worrying how not to make it worse when thousands of homes that were abandoned by storm victims go on sale.

The recovery board moved forward on a plan to transfer properties bought out by the Road Home program to the local parishes. In all, nearly 20,000 people are expected to sell their homes to the state and move out. The idea being that the state would then turn around and sell those properties to developers or home buyers.

But such a move could leave Orleans and St. Bernard parishes in charge of 7,000 homes each.

If they all hit the market at once, it would nearly triple the number of houses for sale in the city and further drive down property values.

City leaders promised that wouldn't happen and even considered offering the homes to the public in phases. To convince people to buy the properties, the city said it planned to work with neighborhood groups and offer land swaps or clustering.

“We are moving forward to do it in a sensitive way, recognizing the fact that the market can be toppled if too much comes out at one time,” said Joseph Williams, Executive Director with the New Orleans Redevelopment Authority.

But the buy outs would make the city of New Orleans its own largest property owner, with a huge job of maintaining and securing thousands of properties.

“We also must move forward cautiously to make sure that, as we become the largest land owner, we are not a slum landlord owner,” said City Councilwoman Cynthia Willard-Lewis (District E).

How to pay for such things like mowing yards has become a concern for council members. Maintaining and securing each home has been estimated to cost $2,566 a year – a bill that would be the city's responsibility, although board members insisted they'd help cover the cost.

“We know those properties are going to get maintained because the money's there and available to get them maintained,” said Walter Leger, LRA board member.

But some still wonder whether an already struggling city government can take on another job.