THIS REPORT DESCRIBES THE PRELIMINARY STAGES AND ACTUAL OPERATION OF A NEIGHBORHOOD YOUTH CORPS (NYC) PROJECT IN SAN JOSE, CALIFORNIA, FUNDED UNDER TITLE III OF THE ELEMENTARY AND SECONDARY EDUCATION ACT. HIGH-SCHOOL-AGE NYC BOYS THOROUGHLY RECONDITIONED FIVE DETERIORATED HOMES IN A RELATIVELY NEW HOUSING DEVELOPMENT. NYC GIRLS FURNISHED THE FIRST RECONDITIONED HOUSE AS A DAY CARE CENTER FOR THE NEIGHBORHOOD PRESCHOOL CHILDREN, WHO ALSO PARTICIPATED IN A MEDICAL SCREENING PROGRAM. IN ADDITION TO RECEIVING WORK EXPERIENCE, PARTICIPANTS WERE GIVEN VOCATIONAL COUNSELING AND WERE PAID FOR THEIR WORK IN THE PROJECT. ALTHOUGH NO OBJECTIVE MEASUREMENT OF THE PROJECT'S EFFECTIVENESS WAS ATTEMPTED, IT IS FELT TO BE SIGNIFICANT THAT NONE OF THE PARTICIPATING YOUTHS DROPPED OUT OF SCHOOL DURING THE YEAR. (LB)