PATHS TO PROGRESS Residents, who include formerly homeless people and those who were in foster care, pay low rent on houses that range from 250 to 400 square feet. After paying rent for seven years, they will be given the deeds to their homes. DETROIT—In 2013, when Keith McElvee got out of prison after a 12-year stint for a drug conviction, he returned to a neighborhood in northwest Detroit that he didn’t recognize. “This is like Beirut,” he thought. “Like a war zone.” Mr. McElvee is naturally gregarious and social-minded. Out of prison he struggled, but then found work...