Vol. XXII, No. 194 [ BusinessWorld Online ]
Wednesday, May 6, 2009 | MANILA, PHILIPPINES
THE HOUSE of Representatives yesterday approved on third and final reading a bill aimed at protecting housing tenants from unreasonable rent increases.
House Bill (HB) 6098, or the proposed Rent Control Act of 2009, sets the annual cap on rent increases at 4% for units being rented out for not more than P10,000 per month in Metro Manila and other highly urbanized cities and not more than P5,000 in other parts of the country. Previous versions of the bill proposes a 10% annual cap on rent increases.
The Senate version, Senate Bill (SB) 3163, which seeks to limit rent increases by not more than 10% for three years or until December 21, 2011 hurdled second reading last April 29. This would be reconciled with the House bill.
Under the House bill, a one-year moratorium on rent increases upon effectivity of the proposed act was also provided.
The proposed bill, would be effective for three years.
On the fourth year, which would be the lapse of the proposed measure, the Housing and Urban Development Coordinating Council (HUDCC) would be granted the authority to continue the regulation of residential units, to determine the period of regulation and its subsequent extensions if warranted, to determine the residential units covered, and to adjust the allowable limit on rental increases per annum which shall not be more than the average monthly inflation rate on rentals of the immediately preceding year as determined by the National Statistics Office (NSO).
Also, the HUDCC is mandated to conduct every five years from the proposed bill’s effectivity a review of its implementation and a study on rental regulation, and submit to Congress its recommendation on whether a continuing regulation is still necessary or deregulation is already warranted.
Republic Act 9341 or the Rent Control Act of 2005, which had set a 10% annual limit to such increase, expired last December 30.
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