The Low Demand Respite (LDR) residential option offered by Horizon House aids the service-resistant mentally disabled population as the first step toward reengagement with the mental health system and the community. In the first phase of the program, residents are provided a non-structured environment in which there are few rules, demands, and expectations. As individuals adjust to life off the streets, the program heightens its expectations, and each resident is encouraged to participate in services tailored to meet his or her individual needs. LDR's major service components include outreach, engagement, case management, residential services, and individualized rehabilitation. When clients leave LDR, a continuum of residential alternatives is made available including low-demand residence, foster homes, board and care homes, family and relatives, and independent housing. Data collected on a sample of 160 LDR residents was analyzed to evaluate the system impact. This assessment found that the residential placements of these mentally disabled clients were very positive; the two factors most strongly associated with rehabilitation outcomes were participation in day programs and case management. 3 tables and 34 references