Seventy-eight homeless men, women and children staying at an emergency shelter were interviewed. The vast majority had severe psychological illnesses that largely remained untreated. Approximately 91% were given primary psychiatric diagnoses: About 40% had psychoses, 29% were chronic alcoholics and 21% had personality disorders. Approximately 1/3 had been hospitalized for psychiatric care. The relationship of mental health policy to the homeless is discussed. Shelters have apparently become alternative institutions to meet the needs of mentally ill people who are no longer cared for by departments of mental health.