MassHousing

DMH/DDS Set-Aside and 3% Priority Programs

Housing opportunities for people with disabilities and older adults

Set-Aside Programs Overview

The MassHousing DMH/DDS Set-Aside and Massachusetts 3% Priority Programs (3% Set-Aside) support the Commonwealth’s efforts to help people with disabilities and older adults live in the least restrictive settings possible by providing priority access to community-based housing coupled with access to services and support to be successful members of the community. These programs represent a unique opportunity for collaboration across state agencies.

Property owners of most MassHousing-financed developments are required to participate by providing priority access to 3% of all subsidized units for closed referrals* from certain Massachusetts state agencies. When notified of an available unit, state agency staff identify eligible applicants and submit completed applications by the deadline. Management then conducts applicant screening in the prescribed order. The state agencies offer support services throughout the application process, for maintaining successful tenancies, and are available to management to address any concerns going forward.

MassHousing’s Asset Management Department reviews a development’s participation in the program as part of the Asset Management Review (AMR). As with any MassHousing requirement, participation can affect the overall outcome of the AMR.

*Closed referral means ONLY designated MA state agency staff can submit applications for people who are currently receiving services through their organization.

DMH/DDS Set-Aside Program Information

  • Applicable to rental developments funded before September 2020 with units restricted to households earning no more than 80% of area median income.
  • Referrals from the Massachusetts Departments of Mental Health (DMH) and Developmental Services (DDS)
  • When a DMH/DDS Set-Aside unit is vacated by a program resident, the state agency supporting that resident receives preference for the next applicant.

Program Documents

3% Priority Program Information

  • Applicable to rental developments funded on or after September 2020 with 17 or more affordable units restricted to households earning no more than 80% of area median income.
  • Referrals from the Massachusetts Departments of Mental Health (DMH) and Developmental Services (DDS), the Executive Office of Aging & Independence and MassAbility.
  • For all 3% Priority units, the 3% Set-Aside Program Coordinator randomizes the order of the applicants for management’s screening.
  • Includes developments funded by the Executive Office of Housing and Livable Communities, MassDevelopment and Massachusetts Housing Partnership, in addition to MassHousing.
  • Units funded by Community Based Housing (CBH), Facilities Consolidation Fund (FCF), or Section 811 count towards the 3% Priority requirement.

Program Documents

Frequently Asked Questions

The Owner’s Agreement to Prioritize Units is part of the loan closing process and can be found in the legal closing documents for a property. Program participation is also reflected in the Tenant Selection Plan (TSP). If those documents are in conflict, contact your Asset Manager to review the Owner’s Agreement and TSP. For MassHousing-financed developments, the Asset Management Department monitors compliance.

The DMH/DDS Set-Aside program requires 3% of a development’s total low- and moderate-income units, rounded up. For example, Shady Pines Apartments has 75 low and/or moderate-income units and is required to have three DMH/DDS Set-Aside units (75 X .03 = 2.25 = 3 rounded up).

The 3% Priority program requires 3% of a development’s total low- and moderate-income units, using normal rounding. For example, Shady Pines Apartments has 75 low and/or moderate-income units and is required to have two 3% Priority units (75 X .03 = 2.25 = 2 with normal rounding).

Contact the 3% Set-Aside Program Coordinator, who will review the required number of units and program procedures, and will create your user account on www.MassAccessHousingRegistry.org. When you have an upcoming 3% Set-Aside vacancy, you must log into your user account and then your development’s page, and list all the required details for the available unit. An email notification will be sent the next day to the respective state agency staff who will identify applicants, assist in completing and submitting applications and verification documents, and attend applicant interviews. The state agency staff will also provide a Referral Verification Letter which should be maintained in your resident files for compliance monitoring purposes.

For a DMH/DDS Set-Aside unit, preference is given to the Department already occupying the unit; i.e., if the current occupant is a client of DMH, then DMH applicant(s) would receive preference over DDS applicant(s). If there is no current DMH or DDS occupant, DDS receives preference for the first unit, and then DMH for the second unit, and so on until the required number of DMH/DDS Set-Aside units has been occupied.

The 3% Priority program requires that for every vacancy, all applications submitted by the application deadline are randomly ordered by the 3% Program Coordinator and screened by the Property Manager in the prescribed order.

If this happens, the development should go to its waiting list to fill the unit. The next vacancy would then be made available to the 3% Set-Aside program.

3% Set-Aside units can float within a development based on unit availability and the unit size and accessibility needs of the applicants. If a current resident of a 3% Set-Aside unit is transferred to another unit, the 3% Set-Aside Coordinator and the resident’s Case Manager, listed on the Referral Verification Letter, should be notified of the transfer.

Yes, the resident may continue to occupy the 3% Set-Aside unit if they continue to follow their lease agreement and remain income-eligible. Until the resident moves out, the unit remains a 3% Set-Aside unit for compliance purposes.

Residents of 3% Set-Aside units should be treated like other residents. Notice of the violation should be sent to the resident along with a notice of a right to a reasonable accommodation. The Property Manager should also contact the resident’s Case Manager, listed on the Referral Verification Letter, as well as the 3% Set-Aside Program Coordinator to discuss the problem and possible solutions.

Contact Information

For questions about the DMH/DDS Set-Aside and 3% Priority Programs, contact