THE PRINCIPAL AIMS OF THE STUDY WERE TO (1) IDENTIFY YOUNG ADULT AND ADULT OFFENDERS APPEARING BEFORE THE COURT WHO MIGHT REQUIRE RESIDENTIAL PLACEMENT IN EITHER A PROBATION HOSTEL OR OTHER ACCOMMODATION, (2) EXAMINE THE REFERRAL PROCESS TO DISCOVER WHY, AND TO WHAT EXTENT, SUCH OFFENDERS WERE NOT ALWAYS SUCCESSFULLY PLACED IN ACCOMMODATIONS, (3) IDENTIFY THE TYPES OF RESIDENTIAL FACILITIES REQUIRED TO MEET THE NEEDS OF DIFFERENT TYPES OF OFFENDERS, AND (4) EXAMINE THE ROLE PLAYED BY PROBATION HOSTELS IN THE DIVERSION OF OFFENDERS FROM PRISON AND OTHER PENAL INSTITUTIONS. IN 1976, PROBATION OFFICERS IN SEVERAL RURAL AND URBAN DISTRICTS IN ENGLAND WERE ASKED TO COMPLETE A RESEARCH FORM WHENEVER THEY PREPARED A SOCIAL INQUIRY REPORT FOR THE COURT OF AN OFFENDER AGED 17 OR OLDER. FROM A TOTAL OF 1,164 FORMS COMPLETED, 423 WERE ORGANIZED INTO THE FOLLOWING CATEGORIES: (1) 107 HOMELESS CASES, (2) 130 PEOPLE REQUIRING A CHANGE OF ACCOMMODATION, AND (3) 186 PEOPLE WITH SATISFACTORY HOME LIVES BUT LIKELY TO RECEIVE A A CUSTODIAL SENTENCE FOR THE CURRENT OFFENSE. OF THE 423 OFFENDERS, 157 WOULD HAVE BENEFITED FROM RESIDENTIAL PLACEMENT. MOST OF THE 157 WERE MALES UNDER 30 YEARS OF AGE AND UNEMPLOYED. THE PROCESS OF PLACING OFFENDERS IN APPROVED PROBATION HOSTELS IS DETAILED. ALSO, PROBATION OFFENDERS IN ORDER TYPES OF RESIDENTIAL FACILITIES TO DETERMINE WHY THEY FAILED TO PLACE SOME OF THEM. A FLOW CHART ILLUSTRATES THE PLACEMENT PROCESS. OF THE 157 OFFENDERS NEEDING RESIDENTIAL PLACEMENT, 68 RECEIVED A CUSTODIAL SENTENCE, AAND MOST WERE NOT PLACED IN RESIDENTIAL FACILITIES BECAUSE OF THE OFFENDER'S UNWILLINGNESS TO BE PLACED, THE UNSUITABILITY OF EXISTING FACILITIES, AND THE SHORTAGE OF FACILITIES. FOOTNOTES ARE INCLUDED, AND TABULAR DATA, A SURVEY, REFERENCES, AND PUBLICATIONS LISTED ARE APPENDED. (PRG)