THIS PROJECT SEEKS TO PREVENT THE COMMISSION OF FURTHER SERIOUS CRIMES BY PARTICIPATING JUVENILES. IT SEEKS TO BREAK THE CYCLE OF DELINQUENCY BY HELPING THE JUVENILES ACHIEVE EMOTIONAL AND SOCIAL SELF-SUFFICIENCY, BY ADVANCING THE EDUCATIONAL LEVEL OF EACH PARTICIPANT, AND BY ENCOURAGING LEADERSHIP TALENT IN PARTICIPANTS. THIS REPORT CONSTITUTES AN ASSESSMENT OF THE SECOND AND THIRD YEARS OF THE PROJECT. THE EVALUATION SHOWED THAT THE EDUCATIONAL OBJECTIVES WERE BEING MET IN LARGE PART, AND THE BUILDING WAS ADMIRABLY SUITED TO PROJECT NEEDS, ALTHOUGH STILL SHOWING DAMAGE CAUSED BY TWO DIFFERENT FIRES WHICH THE PROJECT HAS SUFFERED. THE PROJECT WAS NOT ABLE TO REACH ITS RESIDENCY GOAL OF 50 IN THE CONTINUATION GRANT. AVERAGE ENROLLMENT DURING THE SECOND YEAR WAS 25, DURING THE THIRD YEAR 21, CURRENT ENROLLMENT IS 18. THE SHORTFALL IN ENROLLMENT WAS ATTRIBUTED TO A LOWER THAN EXPECTED RATE OF REFERRALS AND A HIGHER THAN EXPECTED RATE OF TERMINATIONS. THE LOWER THAN EXPECTED RATE OF REFERRALS WAS DUE IN PART TO FINANCIAL CONSTRAINTS IN THE DIVISION OF YOUTH & FAMILY SERVICES (DYFS) AND ALSO TO THE PROJECT ADMINISTRATION'S APPARENT INABILITY TO ESTABLISH A HARMONIOUS WORKING RELATIONSHIP WITH DYFS. THE PRESENT REPORT ALSO FOUND THAT THE PROJECT CONTINUED TO BE CHARACTERIZED BY EXTREMELY HIGH STAFF TURNOVER, PARTICULARLY AMONG THE CHILD CARE STAFF. IT WAS RECOMMENDED THAT THE PROJECT TAKE VIGOROUS ACTIONS TO INCREASE RESIDENCY LEVELS, REDUCE PARTICIPANT TERMINATIONS, AND REDUCE STAFF TURNOVER. (AUTHOR ABSTRACT MODIFIED)