Shannon Battle says that the McKeesport rental house she shares with her two sons is in such disrepair, it might be fit for condemnation.

But on Dec. 31, her 33rd birthday, she will move into a new house on the site of the old McKeesport reservoir -- one that she helped design herself -- as part of a new development facilitated by the McKeesport Neighborhood Initiative.

Two weeks ago, she joined McKeesport Mayor Jim Brewster and Lani Temple, the initiative's executive director, for a ribbon-cutting ceremony in front of her soon-to-be home with about 50 community members.

"These are nice homes and this is an area that needed help," Mr. Brewster said.

Ms. Battle and another family will move into the development in December, and two other families will move into homes sometime in January. Three other homes, which have been sold, will be built and completed in the spring.

The program works with low- to moderate-income families who are first-time home buyers, before ground for the houses is even broken. It helps clients repair their credit so they could get mortgages and prepurchase the homes.

Ms. Temple said she set up the credit counseling program when she realized that aspiring home buyers had to drive all the way to Pittsburgh to meet with banks and go through the credit-repair process.

Through the initiative, classes and counseling are offered at its office on Fifth Avenue in McKeesport.

Ms. Temple said the initiative helps those for whom home ownership seems out of reach.

"People are able to do this," she said. "They just need a little guidance and help."

Half of the cost of purchasing the homes, which are worth around $150,000, were covered by grants from the Pennsylvania Housing Finance Authority, Allegheny County and the Federal Home Loan Bank.

Because the families purchase the homes before they're built, it gives them a chance to choose custom floor plans and pick out all of the fittings -- from flooring to siding to cabinets.

"I got to pick out everything, every inch of the home," said Ms. Battle. "It is truly mine."

At the ceremony, Mr. Brewster spoke of efforts to clean up the Seventh Ward, where the new houses are being built. The city has worked to tear down blighted properties there.

"It makes some sense to tear down the blight," he said. "When they're down, everyone who works to keep their houses in shape, it'll look better. It'll add value to them."

Before the homes were built, the area had a lot of trash and was overgrown with weeds.

"It was a mess," said Ms. Temple. "And now, what a transformation."