The Housing and Urban Development
Coordinating Council (HUDCC) has extended the rent control regulation for
residential units occupied by low-income brackets for another two years until
December 2017.
Effective January 1, 2016 until
December 31, 2017, the rent of any residential unit for those paying monthly
rent of up to P3,999.00 shall not increase by more than 4% per annum. On the other hand, monthly rentals of P4,000
up to P10,000.00 shall not be increased by more than 7% per annum provided that
the unit is occupied by the same lessee. This regulation applies to all
residential units covered by the specified monthly rent, across the
country.
The rent control regulation was
extended pursuant to the authority given to the HUDCC under Republic Act 9653
or the Rent Control Act of 2009 to determine whether to continue or discontinue
the regulation based on a study of its implementation and to adjust the yearly
rate increase accordingly. The law aims
to protect poor and middle-income families from unreasonable rent
increases.
Based on the original provisions of
the law, the rent of any residential unit for those paying monthly rent of up
to P10,000.00 in highly urbanized cities, or up to P5,000.00 in all other areas
shall not increase by more than 7% per annum provided that the unit is occupied
by the same lessee.
The said rental regulation
provisions expired on December 31, 2013. The HUDCC first extended rent control
at status quo rates for two years or up to December 2015.
For the benefit of the poor and
middle-income families, HUDCC yet again extended the rent control up to
December 31, 2017 based on a study undertaken by the Philippine Statistical
Research and Training Institute of the Philippine Statistical Authority.
The study found that 82% of the
renters in the country are renting at less than P4,000 per month. Based on the requirement of the rent control
law to consider inflation rate in determining any adjustment of the rental
rates, the study noted that the average inflation rate in 2014 is at 4.1%,
which was used as basis for the annual increase in rent for families renting at
below P4,000 per month.
The said cap for the increase in
rent will benefit the entire low-income family renters and is consistent with
the intent of RA 9653.
Source : hudcc.gov.ph
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