In early 1975 the recently established Manpower Demonstration Research Corporation, a nonprofit organization based in New York City engaged in managing a multi-site program of supported work for severely disadvantaged people under funding from five federal agencies and the Ford Foundation, was approached by HUD and the Ford Foundation concerning their interest in operating a demonstration of tenant management in public housing sites. The tenant management project whicb MDRC undertook via funding from HUD and the Ford Foundation became operational at seven public housing sites in six cities in June 1976. These sites range in size from 211 to 1,550 dwelling units and contain altogether 4,788 homes for about 19,000 low-income persons. This status report summarizes the highlights of the demonstration during the initial 12 months of operations during which tenants at the several sites organized themselves into a functioning body, underwent training preparatory to their assuming various management functions, and negotiated with the legally responsible local housing authority for the actual transfer of specific responsibilities which they would henceforth discharge.