Recent evidence that a subgroup of homeless individuals have become long-term residents of NYC shelters has spurred a search for new approaches to engage them in services and providing appropriate housing alternatives. The Kelly Hotel Transitional Living Community (TLC), developed by the Center for Urban Community Services (CUCS) with first year funding from the Corporation for Supportive Housing, is one pioneering effort to help mentally ill long-term shelter residents obtain housing. This report presents results of an evaluation describing the TLC model, its implementation by CUCS, and outcomes achieved by its initial group of residents. (Authors)