Rent Control law expires

Posted at 01/01/2009 6:19 PM | Updated as of 01/01/2009 8:24 PM

 The law which imposes protection to housing tenants in the lower income brackets from unreasonable rent increases has expired Wednesday, a top housing official said Thursday.

Lucille Ortille, Housing and Urban Development Coordinating Council (HUDCC) secretary general, told radio dzMM in an interview that Republic Act (RA) No. 9341 or An Act Establishing Reforms in the Regulation of Rent of Certain Residential Units, Providing the Mechanisms Therefor and for other Purposes is no longer effective January 1.

Otille said that RA 9341 passed 2005 was effective only for three years.

Covered under RA 9341 were: “All residential units in the National Capital Region and other highly urbanized cities the total monthly rent for each of which does not exceed Ten thousand pesos (P10,000.00) and all residential units in all other areas the total monthly rent for each of which does not exceed Five thousand pesos (P5,000.00) as of the effectivity date of this Act shall be covered, without prejudice to existing contracts.”

It also said that the rent of any residential unit covered “shall not be increased by more than ten percent (10%) annually as long as the unit is occupied by the same lessee.”

It also said that the “lessor cannot demand more than one (1) month advance rent. Neither can he demand more than two (2) months deposit.”

Otille said that a bill is pending in the Senate to replace the expired law while a similar move was also being undertaken in the House of Representatives.

Ortille explained the importance of the passage of the pending bills especially that the country is facing a global economic crisis.

She said that the previous law helped tenants to ensure against unreasonable increases in rent. With a report from Gretchen Malalad, ABS-CBN News

 


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