THE 100 STUDY SUBJECTS WERE DISTRIBUTED BETWEEN AN EXPERIMENTAL GROUP, WHO LIVED IN HALFWAY HOUSES IN SAN ANTONIO, AND A CONTROL GROUP, WHO WERE RELEASED DIRECTLY TO THE COMMUNITY. THE SUBJECTS, WHO INCLUDED BOTH MEN AND WOMEN, WERE VOCATIONAL REHABILITATION CLIENTS OF THE TEXAS REHABILITATION COMMISSION. PRE-, POST-, AND FOLLOWUP TESTS MEASURING REHABILITATION GAINS, NEED SATISFACTION, AND ADJUSTMENT REVEALED THAT THE RESIDENCY GROUP MADE GREATER REHABILITATION GAINS THAN DID THE NONRESIDENCY GROUP. THE RESIDENCY GROUP SHOWED A STEADY, POSITIVE INCREASE IN LEVEL OF REHABILITATION STATUS THROUGHOUT THE STUDY PERIOD, WHEREAS THE NONRESIDENCY GROUP SHOWED A DECLINE IN REHABILITATION STATUS SCORES AT EACH TEST INTERVAL. DETAILS OF STUDY DESIGN AND FINDINGS, SUPPORTING DATA, AND A LIST OF REFERENCES ARE PROVIDED. (AUTHOR ABSTRACT MODIFIED--LKM)