All of the very poor have a certain potential for homelessness due to traditional economic reasons. This report on the homeless in Chicago (Illinois) presents an overview of a two-part project whose goals are to determine the following: (1) how to prevent homelessness; (2) how to relieve homelessness; and (3) how to reverse homelessness. The characteristics of homelessness are examined in a survey of 535 individuals who represent a random sample of those who obtain their main meal of the day from a free meal program, a shelter, or a residential treatment program for the indigent. Also examined are the social institutions and the general social and economic conditions in Chicago that are associated with homelessness and poverty. Major findings include the following: (1) homelessness is not always constant and long-term; (2) typical characteristics of the homeless include military service, out-of-home care as a child, and mental illness or alcoholism; (3) the distinguishing characteristic of the homeless is that they tend to live alone when they do have a residence; and (4) the homeless use social services more frequently than the poor who have homes. Policy recommendations focus on work as the central issue in preventing, relieving, and reversing homelessness. Statistical data are included on 73 tables. A list of 90 references is also included. (FMW)