HALFWAY HOUSES ARE TRANSITIONAL, COMMUNITY-BASED RESIDENCES THAT PROVIDE A STRUCTURED LIVING ENVIRONMENT FOR CRIMINAL OFFENDERS AND PERMIT OFFENDERS TO ACHIEVE A GRADUATED REENTRY INTO SOCIETY. THE HALFWAY HOUSE CONCEPT HAS ROOTS THAT EXTEND BACK TO THE EARLY 19TH CENTURY. IN RECENT DECADES THE CONTRIBUTION OF HALFWAY HOUSES TO THE CRIMINAL JUSTICE SYSTEM HAS INCREASED CONSIDERABLY SO THAT IN 1976 MORE THAN 1,600 AGENCIES PROVIDING 58,000 BEDS WERE LISTED IN THE INTERNATIONAL HALFWAY HOUSE ASSOCIATION'S DIRECTORY. IN SUCH HOUSES PERSONAL RESPONSIBILITY IS STRESSED AND PRODUCTIVE CHANGE EMPHASIZED. IT HAS BECOME INCREASINGLY CLEAR THAT THE TRADITIONAL SYSTEM OF CRIMINAL JUSTICE AND CORRECTIONS IS INADEQUATE. PRISONS ARE OVERCROWDED, EXTREMELY EXPENSIVE TO MAINTAIN, AND THE HIGH RECIDIVISM RATES INDICATE THAT THE REHABILITATION FUNCTION OF CORRECTIONS IS NOT BEING ACCOMPLISHED. THE TRADITIONAL SYSTEM'S TREATMENT OF PERSONS CONVICTED OF SO-CALLED VICTIMLESS CRIMES HAS BEEN CRITICIZED SEVERELY. WHILE DECRIMINALIZATION OR LEGALIZATION MIGHT CONSTITUTE A MORE HUMANE APPROACH FOR SUCH PERSONS THAN THE HALFWAY HOUSE APPROACH, THIS COURSE OF ACTION WOULD NOT ELIMINATE MANY OF THE PROBLEMS ARISING FROM THE PROSCRIBED ACTIVITIES. THE SYSTEM OF HALFWAY HOUSES POSSESSES THE POTENTIAL TO REMEDY MANY OF THE PROBLEMS CURRENTLY PLAGUING THE TRADITIONAL CRIMINAL JUSTICE AND CORRECTIONS SYSTEM. THEY ARE CHEAPER TO ESTABLISH AND MAINTAIN THAN TRADITIONAL INSTITUTIONS. RESIDENTS CAN BE MADE TO PAY THEIR OWN WAY AND CAN BENEFIT FROM THE MORE PERSONAL, OFTEN INNOVATIVE THERAPY AVAILABLE IN HALFWAY HOUSES. A LIST OF REFERENCES IS INCLUDED. (MPK)