House okays Rent Control Bill

MANILA, Philippines – A bill seeking to extend the Rent Control Law was passed in the House of Representatives on Tuesday night.

Sen. Juan Miguel Zubiri has authored a similar measure in the Senate that would be reconciled with the bill sponsored by Speaker Prospero Nograles.

The Rent Control Law, which expired on Dec. 31, 2008, regulated rent in apartments and other dwellings in Metro Manila and the provinces.

Vice President Noli de Castro urged Congress yesterday to fast-track passage of a measure that would protect tenants belonging to the low-income bracket from unreasonable rent increases for apartments and other dwellings.

“The global economic crisis has hit hard some of our people, especially workers in the export sector who have been laid off or whose incomes have been reduced due to shorter working hours,” he said.

“We need to provide them with safety measures to reduce their cost of living and rent control is one vital measure to alleviate their situation.”

The Senate version of the bill puts a 10 percent cap on rental increases for three years, while that of the House pushes for a one-year moratorium.

After a year, the House version would allow a four percent annual increase for the succeeding three years.

The House’s Rent Control Bill seeks to cover boarding houses, dormitories, rooms, and bed spaces.

Residential units that would be covered are those rented for P10,000 a month in Metro Manila and other highly urbanized cities, and those for P5,000 a month in all other cities and towns.

After the proposed rent control law expires in four years, the Housing and Urban Development Coordinating Council would be authorized to regulate rent.

Lessors would be barred from demanding advance rent of more than one month and deposit of more than two months.

On the other hand, lessees would not be allowed to assign or sublease the rented premises.

Lessors may petition the court to eject lessees in case they sublease the leased premises; they are in arrears for three months; or the lessor needs to use the property for immediate members of his or her families.

Congress first imposed rent control in 1999, which was renewed in 2002 and again in 2005 until it expired last December. — Jess Diaz, Jose Rodel Clapano