This report discusses issues regarding the out-of-home placement of children with developmental disabilities and the need for permanency planning for these children. The document reports on a project which sought to: (1) discern practices of Colorado's Department of Social Services and Division for Developmental Disabilities which affect the out-of-home placement of children with developmental disabilities; (2) determine parental perceptions of factors that lead to caring for their children in or out of their homes; and (3) make recommendations for necessary systems changes. The project interviewed 51 parents and 53 case workers, case managers, and social workers concerning 131 children placed in group homes or regional centers. Forty families who kept their child with disabilities at home and 12 families of adopted children with developmental disabilities were also interviewed. Findings are reported in terms of system issues, children's issues, families' issues, and case workers' or case managers' issues. Among the findings were the following: agency roles and responsibilities have not been clearly defined; many services are not effectively publicized to parents; interagency coordination, communication, and cooperation need improvement; respite care was the number one support needed by all families; and permanency planning was not well understood nor practiced by case workers or case managers. Recommendations for change are also provided. (JDD)