A STUDY OF THE PROBLEMS OF REHABILITATION AND MODERNIZATION OF AN OLD SCHOOL BUILDING IS REPORTED. THE INFLUENCES ON THE DESIGN INCLUDING THE SITE, EDUCATIONAL SPECIFICATIONS, SCHOOL DISTRICT POLICY, LEGAL RESTRICTIONS AND THE EXISTING FACILITY ARE DISCUSSED. ANALYSES OF SPACE AND COSTS ARE PRESENTED. THE QUESTION OF THE INVESTMENT OF THE SCHOOL DOLLAR IN MODERNIZATION OF AN OLD BUILDING OR REPLACEMENT WITH A NEW FACILITY IS POSED FOR THE SCHOOL DISTRICT OFFICIALS. SKETCHES AND MODELS OF PROPOSED DESIGN SOLUTIONS MADE BY ADVANCED ARCHITECTURAL STUDENTS ARE PRESENTED IN THIS REPORT SPONSORED BY THE RESEARCH COUNCIL. (BD)