THIS REPORT COVERING STUDY EFFORTS OF THE DEPARTMENT OF STATE PLANNING ON DEINSTITUTIONALIZATION IN MARYLAND (STATE AGENCIES AND COMMUNITY FACILITIES), DISCUSSES ADMINISTRATIVE AND POLICY ISSUES (CONFLICTING STATE REGULATIONS AND POLICIES, STAFFING PROBLEMS, AND THE REUSE OF BUILDINGS), FINANCIAL PROBLEMS (INADEQUATE FUNDING, THE NEED FOR CONCURRENT FUNDING, AND FINANCIAL ALTERNATIVES), LACK OF SUPPORTIVE SERVICES (TRANSITION SERVICES, COMMUNITY SERVICES, INVENTORY OF COMMUNITY RESOURCES, AND COMMUNITY EDUCATION), AND COMMUNITY ISSUES (COMMUNITY RESISTANCE, EFFORTS TO NEUTRALIZE COMMUNITY RESISTANCE, ACCEPTANCE OF DEINSTITUTIONALIZATION IN THE COMMUNITY, AND INCOMPATIBILITIES OF DEINSTITUTIONALIZATION WITH CODES AND ORDINANCES). TWELVE RECOMMENDATIONS/POTENTIAL SOLUTIONS TO THE PROBLEM OF DEINSTITUTIONALIZATION IN MARYLAND ARE OFFERED. THEY CONCERN THE CENTRALIZED COORDINATION OF STATE DEINSTITUTIONALIZATION ACTIVITIES, THE ENUNCIATION OF STATE POLICIES, FUNDING FOR DEINSTITUTIONALIZATION ACTIVITIES, THE REEVALUATION OF PURCHASE-OF-CARE RATES, STRATEGIES TO NEUTRALIZE COMMUNITY RESISTANCE, THE NEED FOR COMMUNITY EDUCATION, THE NEED FOR EVALUATION, ALTERNATIVES TO COMMUNITY RESIDENCES, THE NEED FOR TRANSITION PLANNING, THE DEVELOPMENT OF STAFF TRAINING PROGRAMS, THE ENCOURAGEMENT OF JOINT COMMUNITY RESIDENCE PROGRAMS, AND REGULATORY PROVISIONS. A LIST OF INTERVIEWS CONDUCTED IN THE COURSE OF RESEARCH IS CONTAINED IN AN APPENDIX. (DEP)