The guide is designed to provide information about the requirements and provisions of various federal housing assistance programs and their direct relevance to the creation and support of residential options for the mentally ill. Chapter I provides a descriptive overview of potentially relevant federal housing provisions. In Chapter II, specific HUD (Department of Housing and Urban Development) funding options are linked to a range of alternative community living arrangements. A final chapter summarizes various strategies which state and local agencies can apply to the process of securing funds and in the development of residential programs. Appended materials include a glossary, a bibliography, a list of key people in HUD area and regional offices, a list of State Housing Financing and Community Affairs Departments, a table showing the regional allocations of Section 8 and new traditional public housing funds, a list of relevant projects cited in the guide, and a Letter of Opinion affirming the eligibility of the mentally ill for Section 8 and traditional public housing programs. (SBH)