REVIEWED ARE THE OPERATIONS OF GROUP FOSTER HOMES, THE TYPES OF CLIENTS THEY SERVE, AND THE POSITIVE AND NEGATIVE ASPECTS OF GROUP FOSTER HOMES AS COMPARED WITH INSTITUTIONS AND OTHER ALTERNATIVES TO INCARCERATION, SUCH AS FOSTER CARE OR INTENSIVE PROBATION. THIS STUDY FOCUSES ON FIVE GROUP FOSTER HOMES - PHOENIX HOUSE, DENBIGH, YOUTH ADVOCATES, YWCA AND BUCKS COUNTY. EACH IS DISCUSSED AND COMPARED IN TERMS OF ITS LOCATION, OPERATIONS, RULES, INTAKE CRITERIA, ATMOSPHERE AND OUTSIDE SUPPORTIVE STAFF. THIS EVALUATION USED FOUR CONTROL GROUPS. THESE WERE JUVENILES PROCESSED THROUGH THE PROBATION DEPARTMENT AND MEETING THE INTAKE CRITERIA FOR HOME PLACEMENT, BUT NOT PLACED FOR VARIOUS REASONS. THE EVALUATION CONCLUDED THAT THERE WAS A DEFINITE NEED FOR SUCH HOMES AND RECOMMENDED THAT ADDITIONAL GROUP FOSTER HOMES BE STARTED. OTHER RECOMMENDATIONS INCLUDED GAINING NEIGHBORHOOD SUPPORT FOR THE HOMES, GETTING UP DEFINITE STANDARDS FOR HOUSEPARENTS, AND MAINTAINING GOOD RELATIONS WITH THE AREA POLICE DEPARTMENT. AMONG OTHER THINGS, THE APPENDIX INCLUDES SAMPLE CASE HISTORIES FROM THE GROUP FOSTER HOMES AND THE CONTROL GROUPS.