Mildly retarded youths (56-69 Intelligence Quotient) and moderately retarded youths (40-55 Intelliqence Quotient) reside in a normal home setting where the majority of training takes place. Individual active treatment programs are developed for the clients, and services are provided in such treatment areas as self-care and daily living skills, social skills, human growth and development, and therapeutic recreation. During these first 11 months of program operation, 28 referrals were made for placement in the program, and 11 were admitted as new clients. Five of the six clients who were released were unsuccessful transfers, and an in-program failure rate of 45 percent resulted. The only meaningful difference found between the unsuccessful transfers and those who remained in the program was in the number of prior referrals for violent offenses. Data on rule violations, unusual incident reports, and program level advancement indicate that clients have shown progress in reducing the frequency of maladaptive behavior. Differences in preentry and postentry scores on two assessment instruments demonstrate clients' increased knowledge and skills in several areas of personal and social life functioning. The actual cost per client day of $91.59 was higher than the budgeted cost of $56.58. This increase was primarily due to the partial utilization of the program's capacity. Data tables and appendixes containing forms used in the evaluation are included.