Homeless families with children comprise the fastest growing segment of the United States homeless population. This study evaluated Year 1 of the Arizona Head Start for Homeless Children and Families Project, designed to meet educational and social needs of homeless children and families, and to assist Head Start agencies in developing effective service delivery models responsive to needs of homeless families. Participating in the study were 26 children, most of whom were current or former residents of a Phoenix homeless shelter where the Head Start classroom was implemented. Four Head Start program components were modified to meet their needs: education, family development, health, and parent involvement. Evaluation results indicated that the Head Start classroom was conducive to smooth transitions. No data were available to determine child developmental progress. A fairly large percentage of children did not receive health services. Focus groups and interviews revealed that families were forming relationships with others and showed improved communication between children and adults. Parent participation was similar to that in typical Head Start classrooms. Some families progressed toward self-sufficiency although it was not possible to attribute a causal relationship between program services and self-sufficiency. Collaboration and cooperation between the Head Start, the homeless shelter, and other service providers occurred in various ways. Communication was a challenge to implementation. Head Start staff and management developed new skills for working with homeless children and families. Strategies contributing to program success and barriers to effective service delivery were identified, and recommendations made to improve the program and its evaluation. (Four appendices include a sample of the Homeless Family Database; database coding guidelines; database summary statistics for year 1; and improvements planned for Year 2. Contains 18 references.) (Author/KB)