ABSTRACTDuring 1986 five young adults left hospital to live in a bungalow in Exeter. This move has been described as a “second generation” project. In other words it was not one of the first such ventures in the area. It followed earlier, trail‐blazing projects and had to compete for administrative and specialist support with a number of other projects being commissioned at the same time.No net change in staff/client ratio occurred and 70 per cent of the new staff team were staff who had previously worked with the young people whilst they were in hospital.A number of findings consistent with the view that the quality of life of the young people had been improved as a result of leaving hospital were recorded: they went out more, and to more varied places; they spent more time engaged in interaction with other people; less behaviour judged to be “inappropriate” was recorded; and staff considered the group as a whole to be “better off”.On the other hand little evidence of integration being achieved within the local community was recorded; and there was little or no evidence of individuals being supported in ways that increased their competence, particularly in relation to participating at a simple level in routine domestic tasks.The implications of these findings for others engaged in the large‐scale commissioning of such housing project