THE MAJOR OBJECTIVE OF THIS 3-YEAR RESEARCH AND DEMONSTRATION PROJECT WAS TO TEST THE FEASIBILITY OF EXTENDING THE RESPONSIBILITIES OF COMMUNITY WORK AGENCIES IN NEW YORK TO INCLUDE THE MENTALLY RETARDED. THE 13 PARTICIPATING GROUP WORK AGENCIES RECEIVED FINANCIAL SUPPORT WAS WELL AS CONSULTATIVE, INTAKE, AND PROFESSIONAL TRAINING SERVICES FROM THE PROJECT STAFF. IN ALL, 27 GROUPS OF RETARDATES (IQ'S 35 TO 75) WERE CREATED, NUMBERING FROM 10 TO 15 MEMBERS. ACTIVITIES WERE PREDOMINANTLY TASK ORIENTED FOR THE YOUNGEST GROUP (AGES 8 TO 12), UNFOCUSED AND EXPRESSIVE FOR THE ADOLESCENTS (AGES 13 TO 17), AND CONCERNED WITH GROUP GOALS AND NEEDS FOR THE YOUNG ADULTS (AGES 18 TO 30 AND OVER). SELF CARE SKILLS WERE STRESSED WITH THE PEER GROUPS SERVING AS MECHANISMS TO INCREASE SOCIAL SKILLS. THE TURNOVER RATE, ABOUT 58 PERCENT OF THE PARTICIPANTS, WAS HIGHEST IN THE CHILDREN'S AND ADOLESCENTS' GROUP IN LOW INCOME AREAS. PARENT QUESTIONNAIRES, COMING PRIMARILY FROM THE FAMILIES OF CHILDREN REMAINING IN THE PROGRAM, INDICATED SATISFACTION WITH THE PROGRAM'S CONTENT AND CONTEXT AS WELL AS WITH THE CHANGES NOTICED IN THE RETARDED CHILD OR ADULT. HOWEVER, CONVENIENCE AND LOCATION OF THE AGENCY WAS A MAJOR COMPLAINT (MADE BY 38 PERCENT OF 56 RESPONDENTS), AND A NEED WAS DEMONSTRATED FOR A CONTINUATION OF PROGRAMS TO REDUCE SOCIAL ISOLATION (LESS THAN ONE-THIRD OF THE PARTICIPANTS ESTABLISHED FRIENDSHIPS WHICH CARRIED OVER OUTSIDE THE MEETINGS). AGENCY DIRECTORS, WHOSE ATTITUDES WERE CONDUCIVE TO THE PERMANENT ESTABLISHMENT OF SUITABLE RECREATIONAL PROGRAMS, REVEALED IN PERSONAL INTERVIEWS A FAVORABLE VIEW OF SERVING THE HANDICAPPED. THE MAINTENANCE OF FAVORABLE ATTITUDES BY AGENCY DIRECTORS AND STAFFS AND OF INTERAGENCY COOPERATION WAS FOUND ESSENTIAL TO THE CONTINUATION OF THE RECREATIONAL PROGRAM AS WAS THE PRESENCE OF THE FOLLOWING ENVIRONMENTAL CONDITIONS--OUTSIDE RATHER THAN LOCAL FUNDING, LACK OF SOCIAL DISORGANIZATION IN THE COMMUNITY, AND LESS NEED FOR COMPREHENSIVE PROGRAMS. RESULTS INDICATED THAT EXPANSION WILL OCCUR IN THE NEXT 10 YEARS AND THAT THE PROGRAM WAS BOTH NEEDED AND FEASIBLE. FUTURE PLANS ARE OUTLINED. A SEMINAR PROGRAM, A WEEKLY GROUP PROGRESS RECORD FORM, AND A NARRATIVE MEETING RECORD ARE PROVIDED. (JD)