This study, conducted for the Division of Developmental Disabilities (DDD) and the Office of Research and Data Analysis in the Washington State Department of Social and Health Services, examines the adjustment of severely and profoundly retarded persons to specialized group homes in community settings. Specialized group homes were first opened in 1979, with 18 in operation for at least 9 months when the study began in September, 1982. The homes provide a community residence for severely and profoundly handicapped people, who typically resided previously at state institutions. Each home has between four and ten residents and provides extensive supervision and training programs for its residents.