There is a quote:
"The last thing our neighbors here in Anacostia want is for us to dispose of a property to someone who just sits on it and doesn't do what they committed and promised to do."Well that someone happens to be the DC government. Residents don't like it when private owners do it, when banks do it, or when a government body (DC or National Park Service, etc) does it. So who is doing it doesn't matter, people living next to a vacant property aren't calmed with the knowledge that DC government, DHCD in this case is the owner. It may even be worse because you can't charge DC government the vacant rate, the purpose of which is to incentivize owners to make property not vacant. DHCD has no incentive for a quick turnaround or repair.
What residents want it for it not to be a vacant/blighted property. Some may want to keep it out of the hands of developers. Others would want DC owned property to help with homelessness or other housing problem. The fact DC government is the property owner does not automatically make things better.