Need for a foster home placement program for handicapped children in an urban area was demonstrated by sending a questionnaire to hospitals and convalescent homes, and by careful review of certain children whose inpatient care was being paid for by the official Crippled Children Program. The outstanding fact was that a significant number of handicapped children were being retained in institutions for social, and not medical, reasons. Agreement was reached among social agencies that a co-ordinated community program for foster home placement of handicapped children was necessary but a definitive method was not evolved nor were adequate funds secured to finance costs.