One-year freeze on housing rent

News from Manila Standard Today, July 15, 2009
By Joyce Pangco Pañares and Fel V. Maragay

..Families and individuals who live in rented dwellings will not have to worry about any rental increases for one year as President Arroyo has signed the Rent Control Act of 2009.

..The law imposes a one-year moratorium on rent increases and prohibits any rental hike for houses, apartments and other residential units including boarding houses, dormitories, rooms and bed spaces being offered for rent.

..The rent control law is also authored by Rodolfo Biazon in the Senate and House Speaker Prospero Nograles, Rep. Rodolfo Valencia, Rep. Teodoro Casiño and Rep. Amado Bagatsing in the House of Representatives.

..The measure covers all residential units in Metro Manila and other highly-urbanized cities where monthly rental does not exceed P10,000 and P5,000 for other areas.

..It also limits the advance payment to the equivalent of one-month rent and deposit to not more than two months worth of rent.

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In relation to this, here's a news release from Bayan Muna, dated last February 12, 2009, regarding Rep. Teddy Casiño's initiative to push for a new rent control bill:

In response to economic crisis, Party list solons push for 2-year freeze on housing rent

CEBU CITY – Party list representatives today pushed for a new rent control law that would freeze any increases in rentals of low-end residential units for the next two years.

In a Congressional hearing held at the Cebu Provincial Capitol this afternoon, Bayan Muna Rep. Teddy Casiño sponsored House Bill No. 5849 entitled "An Act Establishing Reforms in the Regulation of Rent of Certain Residential Units, Providing the Mechanisms Therefore and for Other Purposes" providing for a two-year moratorium on any rent increases for residential units not exceeding P15,000 a month in Metro Manila and P8,000 a month in other parts of the country.

The bill also provides that after the two-year moratorium, rent for such residential units may not be increased by more than 10% for the succeeding three years.

The prohibition would apply to house and lot units, apartments and other dwelling places including boarding houses, dormitories, rooms and bedspaces offered for rent by their owners. It also includes residential units used for home industries, sari-sari stores or other business purposes which doubles as dwelling places for the business owner.

The proposed bill seeks to replace the Rent Control Act of 2005 which expired on Dec. 31, 2008. Rep. Casiño said the expiration of the old law would adversely affect 1.54 million families living in rented houses, thus a need for new legislation.

"The state has to act to protect these families from higher and unreasonable rental payments at this time when we are feeling the adverse effects of the global economic recession. Everyday, businesses are closing down, workers are being laid off, wages are being cut. Families will find it hard to pay their rent, much more any increases in rent," said Casiño.

He added that at this time, the State should intervene in the market in order to protect the interest of low income families and individuals who still opt to rent.

"This is more concrete than the Arroyo government's imagined P330 billion stimulus package that has proven to be nothing but a pack of empty promises," he added.

House Bill No. 5849 is co-authored by Bayan Muna representative Satur Ocampo, Gabriela representatives Liza Maza and Luzviminda Ilagan, and Anakpawis party representative Rafael Mariano.###