The purpose of this report is to study the transition from school to surplus property and the consequences for the immediate neighborhood. From the 53 schools closed in New York City since 1975, six schools were selected for study. Of the six schools, three are vacant, two are used by private organizations, and one by the board of education. Data on indicators of neighborhood change in each of the six communities were collected from city and local sources. In those cases where alternate uses were developed for empty school buildings, the neighborhood retained its character and its style; where buildings were vacant, crime and decay appeared to spread, and the fabric of the neighborhood was torn. The following problems in finding alternate uses for closed schools are identified: lack of coordination among agencies at the city and community level; ineffective strategies for protecting school buildings prior to reuse; and absence of strategic and long-term planning for marketing surplus schools. These problems are discussed and recommendations made for their solutions. (Author/MLF)