FUNDED BY LEAA, 4-A WAS BEGUN AS A MEANS OF RESOLVING COMMON URBAN LIVING DISPUTES OUTSIDE OF THE CRIMINAL JUSTICE SYSTEM AND CIVIL COURTS. IT IS BASED ON THE PRINCIPLE THAT DISPUTES WILL BE VOLUNTARILY SUBMITTED TO FINAL AND BINDING ARBITRATION BY BOTH PARTIES. SPECIFIC GOALS OF THE PROJECT ARE DIVERSION FROM THE CRIMINAL JUSTICE SYSTEM AND SPEEDY RESOLUTION OF DISPUTES BY EASING OF THE TRADITIONAL RULES OF EVIDENCE. THE EVALUATOR FOUND THAT THE PROJECT HAD A DIRECT IMPACT UPON THE MUNICIPAL PROSECUTOR'S WORKLOAD BY DIVERTING 53 PERCENT (1,219) OF THE TOTAL 2,294 COMPLAINTS RECEIVED. MOREOVER, 4-A WAS SUCCESSFUL IN SETTLING A SIGNIFICANT PERCENTAGE OF CASES REFERRED TO ITS MEDIATION PROCEDURES. ALMOST ALL CASES REFERRED TO 4-A WERE SCHEDULED FOR A HEARING WITHIN 7 DAYS. THE PROJECT WAS ALSO FOUND TO HAVE GOOD SUPERVISION AND EXCELLENT MAINTENANCE. THE RECIDIVISM RATE OF 4-A CASES WAS 2 PERCENT FOR THE YEAR, COMPARED WITH 12 PERCENT FOR DEFENDANTS IN CASES HEARD BY THE PROSECUTOR. A SURVEY MADE OF 29 RANDOMLY SELECTED CASES ARBITRATED BY 4-A SHOWED A MAJORITY OF SATISFIED LITIGANTS (65 PERCENT OF THE RESPONDENTS); 79 PERCENT FAVORED THE CONTINUATION OF THE SERVICE. THE AVERAGE COST PER CASE WAS $23.95. IT IS CONCLUDED THAT THE PROJECT WAS COST EFFICIENT AND THAT IT MINIMIZED THE COST TO THE PUBLIC. RECOMMENDATIONS INCLUDE MORE CLEAR-CUT CRITERIA FOR CASE REFERRAL TO 4-A AND EXPANSION OF THE PROJECT'S ARBITRATION MEASURES TO ENCOMPASS REFERRALS TO SOCIAL SERVICE AGENCIES. TABULAR DATA AND FOOTNOTES ARE INCLUDED; REFERENCES ARE PROVIDED. (MRK)