HUDCC extends house rent control to 2015
December 19, 2013 (updated)
Manila, Philippines – Good news for families renting homes.
The Housing and Urban Development Coordinating Council (HUDCC) has decided to extend rent control for two more years, Vice President Jejomar C. Binay announced on Wednesday, Dec. 18.
In a statement, Binay, concurrent chairman of the HUDCC, said the rent raise cap applies to residential units in the National Capital Region (NCR) and other highly urbanized cities whose monthly rent does not exceed P10,000, and those in other areas with rental rates up to P5,000 a month.
Under the Rent Control Act of 2009 (RA 9653), which will expire on December 31, 2013, rents of these housing units shall not be increased by more than seven percent annually as long as the units are occupied by the same lessees.
“We want to help renting families have a breathing room given the recent increases in power rates and the natural calamities we experienced,” Binay said.
The housing czar explained that Section 6 of the same law grants HUDCC the authority “to continue the regulation of the rental of certain residential units, to determine the period of regulation and its subsequent extension if warranted, to determine the residential units covered and to adjust the allowable limit on rental increases per annum.”
Senate President Pro Tempore Ralph G. Recto hailed the HUDDC move to extend the rent control.
Recto described the HUDCC resolution of Dec. 16, 2013 as the “fast-track mode” of extending the Rent Control Act.
“The slow-track, of course, is through legislation. But there is one convincing school of thought which believes that such is no longer needed once HUDCC exercises the authority delegated to it by RA 9653 to extend its effectivity,” he explained.
HUDCC decided to recommend the extension of rent control at status quo rates up to December 2015 based on the initial results of a study commissioned by the agency, Binay said.
The study was conducted by the Statistical Research and Training Center (SRTC), an attached agency of the National Economic and Development Authority (NEDA). (With a report from Mario B. Casayuran)
7.2% Are Renters
According to the Vice President, preliminary results of the study showed that about 1.5 million households or 7.2 percent of the total 21.5 million households nationwide are renters. Of this, 97 percent pay P10,000 and below monthly.
In 2012, the monthly average family income of renters in the country was P23,968, with P27,246 for NCR and P20,794 for other areas.
Families in NCR spend about 12.4 percent of their income for house rent.
The above findings have to be validated, however, as the final figures on housing from the 2010 Census of Population and Housing are still not available, Binay said.
The study also needs additional data such as the Wholesale Price Index for Construction Materials, Real Estate Price Index and Depreciation Costs, among others, to provide a comprehensive analysis on rental regulation according to the Vice President.
“The move of the HUDCC,” Recto said, “was in exercise of its mandate and an implementation of a specific command of the law.”
HUDCC officials who attended yesterday’s meeting chaired by Sen. Joseph Victor “JV” Ejercito conveyed Binay’s request for a congressional resolution to validate and strengthen HUDCC’s move.