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New Rent Control Law necessary — Nograles

By Charlie V. Manalo

01/04/2009

Speaker Prospero Nograles yesterday raised the need for a new Rent Control Law after it expired last Dec. 31 to protect millions of house and apartment renters from the aftershocks of the global financial turmoil.

He said the Rent Control Law is one of the necessary social parachutes that should remain in place to ease the burden of millions of urban families who still cannot afford to buy their own homes.

“It’s already bad enough that many of our Filipino families can hardly put food on their tables. An expired Rent Control Law can mean additional hardships for our people. We still need this Rent Control Law,” Nograles said.

Although he agreed with the observation of House committee on housing and urban development vice-chairman Eduardo Zialcita that the best alternative is for the people to avail themselves of low-cost and socialized housing units which have lower mortgage payments than most rates for apartment rentals, Nograles said many Filipino families still opt to rent due to many factors, including employment accessibility.

“Many of our low-cost and socialized housing units are still inaccessible so I think that we are not ready to completely dismantle the Rent Control Law. That can be done as soon as the government completes the new LRT line than extends up to Cavite where many housing units are located, the north rail system and the C-5 extension. By then, there should be no more excuses for not availing these low-cost and socialized housing units,” Nograles said.

Nograles added he will co-author with committee on housing and urban development chairman Rodolfo Valencia a counterpart bill to Senate Bill 2884 filed by Sen. Miguel Zubiri which extends the Rent Control Law for three years, effective Jan. 1, 2009 up to Dec. 31, 2011.

The Rent Control Law sets a 10-percent cap annually on increase on the lease of a residential being rented out for not more than P10,000 a month in Metro Manila and other highly urbanized cities and P5,000 in other parts of the country.

It also prohibits the collection of more than one-month advance rent and two months advance deposit as the combined three months advance payment and deposit already protects the landlord. The deposit will be used to settle unpaid utilities bill by the renter or repair any damage caused on the unit.

To also protect the landlords, the law defines the grounds for ejection which include failure to pay rent, the need to repair it in case it has been condemned by building authorities, or if the owner will now use it for his family.