Vol. XXII, No. 134 [ BusinessWorld Online ]
Monday, February 9, 2009 | MANILA, PHILIPPINES
ANOTHER VERSION of the rent control bill, this one seeking a permanent cap on rent increases, has been filed at the House of Representatives by militant party-list groups.
Bayan Muna party-list Reps. Teodoro A. Casiño and Saturnino C. Ocampo; Anakpawis party-list Rep. Rafael V. Mariano; as well as Gabriela party-list Reps. Liza L. Maza and Luzviminda C. Ilagan have filed House Bill (HB) 5849, their own version of the Rent Control Act of 2009, which sets a permanent rent control mechanism as proposed by the Senate.
Limits
Under their bill, rent in Metro Manila and other highly urbanized cities will not exceed P15,000, while rent in other parts of the country will not exceed P8,000 for a period of two years after proposed legislation takes effect.
After this two-year period, rent on any residential unit will not be increased by more than 10% annually.
Mr. Casiño said that with the expiration of Republic Act 9341, also known as the Rent Control Act of 2005, a new law that will protect renting households and individuals from higher, unreasonable rental payments is necessary.
Quoting a National Statistics Office Census on Population and Housing 2006 report, he said that about 1.54 million families and individuals living in rented houses in the country are now facing the prospect of being burdened by higher lease payments.
However, Mr. Casiño said that it is essential to increase the amount of rent cap in the crafting of a new law and not merely extend the lapsed RA 9341, which covers only rent not more than P10,000 for Metro Manila and urbanized cities and not more than P5,000 for other parts of the country, in order to factor in contemporary market forces.
"Original figures which were given out during the early ’80s and ’90s do not hold true anymore, factors like inflation should be looked at," he said in a telephone interview late last week.
Mr. Casiño added that the increase in rent amount also gives apartment owners some leeway.
"Inasmuch as we are concerned mainly for the renters, we are also taking into consideration the plight of the apartment owners. The previous amount coverage is small and will not provide for unit maintenance and repairs," he added.
Speaker Prospero C. Nograles of Davao City (1st district) and Oriental Mindoro Rep. Rodolfo G. Valencia (1st district) had earlier filed a HB 5703, a bill extending the lapsed rent control act for another three years. The House committee on housing and urban development, of which Mr. Valencia is chairman, is currently holding public hearings on this measure. — JFSV
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