Tuesday, July 14, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
A LAW reimposing caps on rent increases until 2013 is scheduled to be signed into law today by President Gloria Macapagal-Arroyo, Malacañang yesterday announced.
"The state shall continue to protect housing tenants in the lower income brackets and other beneficiaries from unreasonable rent increases," the proposed Rent Control Act of 2009 states.
The measure imposes a one-year moratorium on rent increases for covered residential units, and caps subsequent annual hikes at a maximum of 7% cap until December 31, 2013.
It covers all residential units in Metro Manila and other highly urbanized cities where monthly rents do not exceed P10,000. The cut-off is P5,000 for residential units in other areas.
The proposed law also prohibits lessors, or owners of residential units, from demanding advance rent of more than one month as well as deposits of over two months.
The Housing and Urban Development Coordinating Council is tasked to study if rents should remain regulated after 2013. — B. S. Sto. Domingo
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