Hi,
1- Open the /neighborhood/languages/ folder and duplicate the en_US.po file, then rename it to your desired language code. For example; for Ukrain you need to re-name it as ru_RU.po . You can find all the codes from this link http://codex.wordpress.org/WordPress_in_Your_Language
2- Then you will need to open the .po file in PO Edit. Once opened, you will see all strings that needs to be translated. Type the translation of a string into the “Translation” column. Do not delete or edit “Original string” part.
3- When you finish translating, save the file. This will create an .mo file in the same directory.
Upload the new files into the languages folder of the theme /wp-content/themes/neighborhood/languages/ and then follow this guide: http://codex.wordpress.org/Installing_WordPress_in_Your_Language#Single-Site_Installations
Thanks
Mohammad