REDUCTION OF THE NUMBER OF CASES BEING HANDLED BY THE JUVENILE COURT WAS THE RESULT OBTAINED BY THE SACRAMENTO COUNTY DIVERSION PROJECT THROUGH SHORT-TERM FAMILY COUNSELING. THIS TECHNIQUE WAS USED BY THE JUVENILE HALL WHICH DEVELOPED A TREATMENT UNIT CALLED THE PREPLACEMENT INTERVENTION TEAM (PIT). THE TEAM OPERATED IN THE ADMINISTRATIVE CONTEXT OF A JUVENILE HALL SIMILAR TO THE FAMILY SETTING OF YOUTHS WHO WERE SUCCESSFULLY RETURNED TO THEIR OWN HOMES. ALL PIT RESIDENTS WERE HOME-PLACEMENT FAILURES WHO HAD BEEN REMOVED FROM THEIR HOMES BY COURT ORDER TO AWAIT OTHER PLACEMENT. GROUP THERAPY WAS STRUCTURED WITHIN THREE GROUPS: ONE GROUP FOR THE YOUNGER RESIDENTS PROVIDED ACTIVE TECHNIQUES SUCH AS SCULPTING, ART, AND ROLE PLAYING; A SECOND GROUP FOR OLDER RESIDENTS WHO DEMONSTRATED MORE MATURE PROBLEM-SOLVING ABILITIES; AND A THIRD GROUP FOR THOSE RESIDENTS WHO DID NOT APPEAR TO FIT INTO EITHER OF THE OTHER GROUPS. ALL GROUPS WERE COED. THE SAMPLE INCLUDED 41 RESIDENTS. THE FINDINGS SHOWED THAT 71 PERCENT OF THE 41 PIT YOUTHS WHO HAD PREVIOUSLY BEEN DESIGNATED HOME PLACEMENT FAILURES WERE STILL AT HOME AFTER PARTICIPATING IN THE PIT PROGRAM. THE EXPERIMENT CONCLUDES THAT FOR SOME 20 TO 30 JUVENILES WHO WERE HEADED FOR OUT-OF-HOME PLACEMENT, PIT PROVIDED EFFECTIVE INTERVENTION. THIS STUDY IS CONSIDERED TO BE AN ENCOURAGEMENT TO EXPERIMENT WITH FAMILY COUNSELING WITH GROUPS OF INCARCERATED HOME-FAILURE YOUTHS.