maybe the grass is very dry because of the dropoff- moisture draining and evaporating. It's a shame builders will build and leave a situation like this.
If you can afford, I would ask for a couple landscapers in person to visit and give ideas.
Maybe a path near the porch, and then about a five foot wide bed on the hill edge? I'm not sure what they can do at the far edge. Some sort of rock border? Whatever they would plant in the bed would have to tolerate dryness or have consistent watering. A planting would sort of transition to the woods and make the dropoff less obvious.
It does look like a difficult situation.
