THIS IS VOLUME 2 OF A 2-VOLUME REPORT OF A SELF-EVALUATION PROJECT INVOLVING COMMUNITY-BASED RESIDENTIAL CENTERS. VOLUME 1 CONTAINED THE STEPS NECESSARY FOR THE SELF-EVALUATION OF HOUSE PROGRAMS. VOLUME 2 INCLUDES THE METHOD AND RATIONALE FOR THE DEVELOPMENT OF THE SELF-EVALUATION PROCESS, TOGETHER WITH A DISCUSSION OF THE INITIAL REACTIONS OF THE PARTICIPATING HOUSE STAFFS TO THE CONCEPT. A SAMPLE OF 26 AGENCIES VOLUNTEERED TO PARTICIPATE IN THE SELF-EVALUATION PROJECT. WHILE UNINTENDED, THE SAMPLE IS CLOSE TO BEING REPRESENTATIVE OF THE RANGE AND TYPE OF PRIVATELY-OPERATED HALFWAY HOUSES IN CANADA. THE VARIETY OF HOUSES VISITED IS CONSIDERED SUFFICIENT FOR AN ADEQUATE TEST OF THE PRINCIPLES AND MONITORING FORMS DEVELOPED FOR SELF-EVALUATIVE APPLICATION. THE PROGRAM ELEMENTS INVOLVED IN THE SAMPLE WERE ONE-TO-ONE COUNSELING, GROUP MEETINGS, THE HOUSE ATMOSPHERE OR MILIEU, AND EMPLOYMENT AND EDUCATIONAL ASSISTANCE. THE INTAKE POLICIES AND PRACTICES OF THE HOUSES VISITED ARE ALSO CONSIDERED. THE PROBLEMS OF THE HOUSE PROGRAMS ARE VIEWED MAINLY IN TERMS OF THEIR ABILITY TO MEET THEIR GOALS AND THE NATURE OF THEIR INTERNAL MANAGEMENT STRUCTURE. RECOMMENDATIONS ARE PRESENTED, SPECIFYING IMMEDIATE STEPS THAT MUST BE TAKEN IN HALFWAY HOUSE MONITORING AND EVALUATION. THE APPENDIX CONTAINS A REVIEW OF THE LITERATURE ON SELF-EVALUATIVE STUDIES AND COMMENTARIES, RESULTS OF EVALUATIONS, AND THE SYSTEM PERSPECTIVE OF CORRECTIONAL EVALUATION. FOR VOLUME 1, SEE NCJ-46599.