The manual presents policies and guidelines for planning and developing group homes for developmentally disabled and mentally retarded adults. Procedures are outlined for agencies involved in developing a group home, including the area mental health program, non-profit board, regional mental health office, regional facilities serving the mentally retarded, county department of social services, and the division of facility services. Among topics addressed are group home location, funding, resident selection, and facility licensure. The bulk of the document is comprised of 53 appendixes, including sample application forms, sample agreements between cooperating agencies, lists of job responsibilities, and information on community relations. (CL)