THE GOALS AND ORGANIZATION OF A HALFWAY HOUSE IN NEWARK ARE EXAMINED AND EVALUATED, FROM THE STANDPOINT OF ITS MEMBERS, AS ONE STEP IN A TRANSITION BETWEEN STATUSES, AND SECOND, AS ONE OF SEVERAL ORGANIZATIONS WHICH PROCESS THE SAME INDIVIDUALS IN TURN. INFORMATION WAS OBTAINED ON THREE STAGES OF THE SEQUENCE - THE INSTITUTIONAL STAGE HALFWAY HOUSE STAGE AND POST-HOUSE PERIOD IN THE COMMUNITY. THE HYPOTHESIS IS THAT INMATE NORMS AND PATTERNS OF BEHAVIOR WOULD CARRY OVER TO THE HOUSE WAS NOT ESTABLISHED. ONE CONCLUSION THE AUTHOR DRAWS FROM THE STUDY, IS THAT THE ORGANIZATIONAL STRUCTURE OF THE HOUSE WAS INAPPROPRIATE FOR THE PROGRAM WHICH IT ATTEMPTED TO OPERATE, PARTICULARLY THE GROUP THERAPY PROGRAM. THE SHORTAGE OF RECRUITS AND A LOW LEVEL OF INTERACTION AMONG MEMBERS ARE DISCUSSED. THE AUTHOR DEVELOPS A SCHEMA IN WHICH FOUR KINDS OF IDEAL PROGRAMS ARE SUGGESTED FOR THE OFFENDER AT THE POINT OF RELEASE. THE CONDITIONS NECESSARY FOR THE OPERATION OF EACH ARE EXPLORED AND STRUCTURES BEST-SUITED TO THEIR IMPLEMENTATION ARE SUGGESTED. (AUTHOR ABSTRACT MODIFIED)