Established in 1970 and operated by the Association for the Advancement of Mexican Americans, the George I. Sanchez Junior Senior High School (Houston, Texas) is an alternative school for Hispanics in grades 7-12. The school, staffed originally by volunteers, acquired a full-time executive director in 1973, established relations whith the Houston Independent School District (HISD) in 1975, obtained accreditation in 1978, and graduated its first class in 1979. Like many alternative schools, the George I. Sanchez school faces challenges in the areas of curriculum development, accreditation, staffing, resource development, equipment, and especially funding. Although the Sanchez school has obtained funding from the Model Cities Program, the Emergency School Aid Act, and the Department of Justice, it still faces funding problems. Because most of the students come from lower socio-economic status families, they cannot pay tuition. The school serves the community in several important ways: as the last resort for many Hispanic students, as an ombudsman for the Hispanic community with HISD, and as a liaison between parents and schools. Alternative schools provide various advantages for Hispanic students including opportunity for a high school education, better student-teacher relationships, and better self-concept. (SB)