Written as a guide as administrators in Washington state considering a home based preschool for handicapped children, the manual provides information on program planning and development. An initial section reviews the prototype model that served handicapped children 3 to 8 years old in a rural area. Also addressed in separate chapters are the following topics (sample subtopics in parentheses): a rationale for home based programs; funding methods; operating costs; and how to get started (developing goal statements, selecting staff, selecting instructional materials, and implementing and evaluating the program). Appendixes include sample forms and lists of screening and evaluation instruments. (CL)