By Jess Diaz Updated February 11, 2009 12:00 AM [ philstar.com ]
MANILA, Philippines - The House committee on housing and urban development will hold a public hearing tomorrow in Cebu City on the proposed extension of the Rent Control Law.
Speaker Prospero Nograles and Oriental Mindoro Rep. Rodolfo Valencia, committee chairman, will lead the hearing. The two have invited Cebu congressmen to join them.
Nograles and Valencia are authors of House Bill 5703, which seeks to extend the Rent Control Act of 2005, which expired last Dec. 31.
The Speaker said about 1.6 million Filipino families have been adversely affected by the expiration of the law.
“We hope to get the opinions and recommendations of all stakeholders, both the affected families and owners of residential units for rent,” he said.
Valencia said several government agencies and private associations have expressed support for HB 5703.
These include the Home Development Mutual Fund, Presidential Commission on Urban Poor, Housing and Urban Development and Coordinating Council, Philippine Association of Realtors, and Subdivision and Housing Developers’ Association, he said.
However, one group, the Chamber of Real Estate Builders Association (Creba), the biggest organization of real property developers, opposed the Nograles-Valencia bill.
In a position paper, Creba said studies here and abroad have shown that rent control results in stiff competition for low-priced housing units for rent, low quality of housing for the poor, higher rent for the uncontrolled sector, and misallocation of resources.
It said extending the law would discourage property owners from improving dwelling units for rent.
The 10-percent provision for rent increase is negated by higher real estate taxes and depreciation cost, added Creba, which contractor Reghis Romero heads.
“Given all the arguments, the bottom line should be what is good for the general public. We are sure the hearings will give us the opportunity to seek a middle ground beneficial to all,” Nograles said.
Under the bill, rent would be frozen for housing units with rent of P10,000 a month in Metro Manila and P5,000 in the provinces.
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