Please explain this logic on a new housing proposal

To put a 'Governtment-ese' spin on the 'squatters', we'll call them 'urban homesteaders', and if the individuals/families can live there, stay mostly employed, pay their basic bills and property taxes, then, similar to our historic homesteading examples, after a certain period of time, they'd own the place.

Hey Newt Gingrich had a speech he did a few months ago and I would love to share this with you. This will address the housing crisis. http://www.youtube.com/watch_popup?v=qtjfMjjce2Y

Since I have a house to sell right now, I am all for it! Obama just hopes he is out of office the next time the bubble bursts. This should open up more new home building too.