Senate approves extension of Rent Control Law

In a unanimous vote, the Senate passed on third and final reading yesterday a measure extending the Rent Control Law to protect low-income tenants from indiscriminate increases in rents.

Malacañang had certified as urgent Senate Bill No. 1949 filed by Senators Ralph Recto, Rodolfo Biazon and Noli de Castro seeking to regulate the rent for certain residential units.

The law imposes an eight percent ceiling on the annual increase on the rent that may be imposed on residential units all over the country, which are leased P7,500 or below a month.

It will be effective for two years beginning Jan. 1, 2002 so as not to leave a vacuum when the present Rent Control Law expires on Dec. 31.

Under the bill, a residential unit is defined as an apartment, house or parts of it or units, boarding houses, rooms, dormitories and bedspaces that are used principally for dwelling purposes.

In his sponsorship speech, Recto said the bedspaces were included for the sake of the thousands of students trooping to urban centers to be near their schools.

Recto argued the rent control would not dampen housing production since in the first place, "the shelter backlog ranges from 3.8 million to 4.2 million units" and the government target is merely 150,000 new units a year. – Aurea Calica