This report the first of a 3-volume study, presents the findings and conclusions of Phase I of the Federal City College Research Project on the role of college-community relationships in urban higher education, planned as a 4-phase study. This report deals with: the background of Phase I; the approach and methods used; the principal findings of the study. These concern the nature of the relationships and social processes involved in college-community interaction, and the critical problems that must be anticipated and confronted by higher education institutions seeking to be responsive to urban problems. The specific problems that developed during the establishment of Federal City College are described, and, on the basis of this experience, a set of generic problems or fundamental concerns of "relevant" urban colleges and universities are discussed. The report concludes with a description of the special problems in conducting research on inner-city institutions and community forces, and recommends (on the basis of Phase I findings) a set of 5 high-priority research tasks for Phase II. An annotated bibliography of literature on college-community relationships is included in the appendix. (AF)