Wait for a hard, soaking rain in the early Fall. After the rain, while the soil is soaked, pierce the soil every eight to 12 inches with an aeration fork. Rock the fork handles to move the tines while they are in the ground, breaking up some of the compaction.
Cover the entire area with six inches of compost. Spread the compost evenly and soak the compost to force some of it to fall into the aeration holes. Cover the compost thickly with an inch of straw. Cover the straw with another inch of compost. Cover the entire surface with Austrian winter pea seeds. Austrian winter peas are legumes that add nitrogen to the soil with their roots, and more nitrogen when they are cut and left to decay. Wait for Spring.
Scythe down the Austrian winter peas in the early Spring, and leave the cut stalks spread evenly on top of the ground. Cover the entire area with wetted newspapers, a section thick, with no gaps. Spread an inch of straw over the whole surface. Spread an inch of compost on the straw mat. Seed the entire area with grass or your desired cover. Keep the surface moist until the grass is well germinated.
Do not cut with a lawnmower in the first summer. Either let the grass grow to a full height or cut it four to six inches high with a weed-eater. Avoid trampling the area. Cut with a mower on the second Summer.