The first year report summarizes the activities of Project ERA (Enrollment, Retention, and Advancement), an adult basic education demonstration project in the Providence Model Cities area. The program was committed to demonstrate an effective and imaginative effort in the Model Cities area for recruiting and instructing hard-core functionally illiterate adults and for teaching English as a Second Language (ESL) to non-English-speaking adults. One hundred adult students enrolled in the program. The most innovative element of the program was the home class method of delivery of ESL instruction, with 30 home study groups of five or more students. The transient nature of the population and subculture conflicts, however, affected attendance and student retention in the program. Problems related to student evaluation, followup of inactive students, and record keeping are noted. A 100-page appendix includes promotional materials, contact letters, mailing lists, radio and television public service announcements, and press releases. Also appended are new forms developed as a result of Project ERA experience and two sample learning activity packages--vocational planning and transportation costs. (MW)