1.55 million low-income Pinoys to benefit from new rent control law

MANILA, Philippines – Around 1.55 million low-income Filipinos renting homes will get a reprieve from exorbitant rent hikes with President Arroyo’s signing into law of the new rent control law yesterday.

“The significance of the rent control law that was just signed by the President is that it would somehow assist or help our less privileged citizens so that they will not bear the burden of uncontrollable increases in rentals of their abode,” Executive Secretary Eduardo Ermita said.

Ermita said that increases in rent would have a huge impact on the finances of employees, particularly those in the lower income bracket.

“So now we have rent control and there are procedures prescribed under the law so that the C and D classes who do not have their own homes will not be burdened too much,” he said.

Republic Act 9653 or the “act establishing reforms in the regulation of rent of certain residential units” is an amendment to RA 9341, which was passed in 2005.

In the first year of implementation of the new law, property owners or lessors will not be allowed to raise their rent.

From the second to the fourth year, any increases in rent would have to be limited to seven percent or a three-percentage point reduction from the 10 percent allowed under the previous law.

The new law covers renters in Metro Manila and other highly urbanized cities who pay P10,000 a month or less as well as those in other parts of the country who pay P5,000 or less a month.

Boarding houses, bed spaces and dormitories would be allowed to raise rent only once a year.

The rent control law would be in effect for four years, after which the Housing and Urban Development Coordinating Council (HUDCC) would be given the power to regulate the rental of residential units.

Under the law, the HUDCC would continue the regulation and determine the period of regulation and subsequent extensions.

If necessary, the HUDCC would determine the residential units to be regulated and adjust the allowable limit on rental increases per year.

The HUDCC would also be tasked to conduct a review of the implementation of the law every three years and submit recommendations to Congress. –Marvin Sy, Philippine Star