You are right that the units sit empty because the banks have loan covenants with the landlords that minimum rent is XX, which is higher than the unit is currently worth.

It isn't so much extend and pretend, its landlord CANT lower the rent without violating their loan.

If you get government involved, this will just get more expensive. We need to wait it out until the landlord can't pay the loan anyway and is forced to sell the building at a massive loss. Then the new owner will have a new loan with a new price floor and the dance can start over.