One of the major activities of the Urban Literacy Network (ULN) is a grants program aimed at supporting cooperative, collaborative approaches to developing resources and support systems for literacy in urban areas. Eleven grants were awarded in 1987-1988 in the following urban areas: Boston; Chicago; Denver; El Paso; Houston; Nashville; Oklahoma City; St. Louis; San Diego; Tucson; and Washington, D.C. The ULN grants program offered an important opportunity to contribute to the knowledge base about the nature of the urban literacy context, particularly with regard to the value of cooperative and collaborative approaches to developing resources and sustaining support over time. The delivery system of programs and services addressing the need of nonliterate adults was found to be particularly diverse and fractionalized in urban areas. The funders of these programs were similarly diverse. They included many public agencies at all levels of government, corporations, philanthropic organizations, and individuals with widely ranging motives. Illiteracy was found to be an invisible handicap affecting adults of all classes, ethnic groups, and ages. Literacy was discovered to be a complex political issue, with many of its aspects being hotly debated at certain times and carefully sidestepped at others. (Half of this report is devoted to summaries of ULN grant projects in the 11 cities that received grants in 1987-1988.) (MN)