SINCE 1974 THIS PROJECT HAS BEEN CONDUCTED BY THE AMERICAN PUBLIC WELFARE ASSOCIATION WITH FUNDING FROM LEAA. IT ASSISTS FIVE COMMUNITES IN AS MANY STATES IN DEVELOPING ENVIRONMENTS DESIGNED TO STIMULATE POSITIVE YOUTH DEVELOPMENT. RESEARCH AND ANALYSIS OF YOUTH NEEDS, COORDINATION OF EFFORTS OF EXISTING YOUTH AGENCIES, AND PLANNING TO MEET DESIRED OBJECTIVES ARE PRINCIPLE EMPHASES IN THE PROJECT. A NATIONAL STAFF CONSISTING OF A PROJECT DIRECTOR, ASSISTANT PROJECT DIRECTOR, TECHNICAL ANALYST, AND SECRETARY WORK WITH THE COMMUNITY COORDINATORS WHO EACH SUPERVISE THE PROJECT AT A LOCAL LEVEL. THE PROJECT'S GOAL FOR THE FIRST YEAR WAS TO ADMINISTER AND ANALYZE SIX COMMUNITY RESEARCH INSTRUMENTS WITH THE INTENTION OF PROVIDING THE DATA BASE NEEDED FOR FUTURE PLANNING. THIS GOAL WAS NOT REACHED DUE TO THE INEXPERIENCE OF COMMUNITY COORDINATORS AND THE LACK OF COMMUNITY SUPPORT NEEDED FOR SOUND RESEARCH. THE SECOND ANNUAL REPORT ANNOUNCES THAT EACH SITE MADE SUBSTANTIAL PROGRESS TOWARD COMPLETION OF THE RESEARCH COMPONENT. PROGRESS WAS ALSO MADE TOWARD ESTABLISHING THE PLANNING STRUCTURES NEEDED TO IMPLEMENTED GOALS FORGED FROM THE DATA BASE. A SUMMARY OF EACH SITE'S MAJOR ACCOMPLISHMENTS IS INCLUDED. THE APPENDIX CONTAINS A GRAPH OF A MODEL YOUTH SERVICE SYSTEM. (RCB)