In this video Dave Epstein  of Growing Wisdom and Dennis Collins from Mount Auburn Cemetery explore how Mt. Auburn is currently using burlap, compost and selected native plants to bring a hillside alive and stop the erosion.

Although this process was done on a large scale at Mt. Auburn, you can do the same thing at home with your own compost, some burlap and a few plugs of plants.  You need to role the soil/compost into a tube of burlap and then secure it to the ground.  Then slice a small opening in the burlap and place your plants in the opening.  The smaller the plants the better chance you have that they will become established.  You most likely will need to irrigate for 1-2 years but then the area should be self-sustaining.