"We have inspectors who will come out and we will fine banks who are taking over these homes. Many (banks) claim that they don' t fully own (the homes) yet but they are responsible for them," he said.

"These dilapidated homes can drag down an entire neighborhood's quality of life and property values," Garcetti said. "This ordinance is about stopping banks from neglecting seized homes to the point that they become magnets for trash, vermin and crime."

Councilman Bernard Parks, whose district includes part of South Los Angeles, said banks must be held accountable.

"We can no longer allow banks to act solely in their own financial interest while disregarding the consequences for the community," he said.

Los Angeles' 2010-11 budget depends on the fees and fines from this program to generate at least five million dollars, which would help prevent layoffs of city employees.

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