Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILL No,_ 2636

Introduced by Rep. TEDDY A. CASINO.

EXPLANATORY NOTE

Government statistics show that out of the 780,437 business enterprises operating in the Philippines,
99.6% (777,357) are micro, small and medium enterprises. Of this number, 91.4% (710,822) are
micro enterprises and 8.2% (63,526) are small enterprises.

Involved in manufacturing, wholesale and retail trade, restaurants and services, micro and small and
enterprises contribute around 30.4% (1,731,082) and 25.5% (1,449,033), respectively, of the total
jobs generated by businesses each year. These businesses contribute a large portion of the
manufacturing and export sales of the country. It is for these reasons that the government needs to
extend additional support to said enterprises.

Given thei frail nature as start-up and developing businesses, itis crucial that the State creates an
environment that will encourage their growth and expansion, and most importantly, survival.

Rent is among the largest expenses in running a business, This bill aims to put a cap on the increases
of rent of commercial spaces, in the process expanding Republic Act no. 9653 or the Rent Control
‘Act of 2009. This would allow micro and small business to use money otherwise spent on exorbitant
rent hikes for their capital, labor and other operational expenses.

In this light, the passage of this bill is earnestly sought.
Approved,
i, Ne Oadby

TEDDY A. CASINO
Bayan Muna Party-list



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILLNo.__ 56536

Introduced by Rep. TEDDY A. CASINO.

AN ACT EXPANDING REPUBLIC ACT NO. 9653
OR THE RENT CONTROL ACT OF 2009 TO INCLUDE

MICRO AND SMALL BUSINESS ENTERPRISES
Be it enacted by the Senate and the House of Representative of the Philippines in Congres assembled:
SECTION 1. Short Title. This Act shall be known as “Expanded Rent Control Act of 2011.”
SECTION 2, Sec. 2 of Republic Act No. 9653 is hereby amended to read as follows:
“See. 2 Declaration of Policy. - The State shall, for the common good, undertake a continuing
program of encouraging the development of affordable housing AND COMMERCIAL SPACES
for the lower income brackets, other beneficiaries AND MICRO AND SMALL BUSINESS
ENTERPRISES (MSBEs).

Toward this end, the State shall continue to protect housing tenants in the lower income brackets
AND MSBES from unreasonable rent increases.”

SECTION 3. Sec. 3 of Republic Act No. 9653 is hereby amended to read as follows:
“Sec. 4. Definition of Terms. - The following terms as used in this Act shall be understood as:

(@) “Rent” shall mean the amount paid for the use or occupancy of a residential unit OR
COMMERCIAL SPACE whether payment is made on a monthly or other basis.

(©) “Residential unit”
sxx

(©) “COMMERCIAL SPACE” shall refer to any building and its units, stalls or any space
allotted for commercial purposes.

@ “Immediate members of family of the lessee or lessor”

XXXXX


(©) “Lessee” shall mean the person renting a residential unit OR COMMERCIAL SPACE.

(6 “Owner/Lessor” shall include the owner or administrator or agent of the owner of the
residential unit OR COMMERCIAL SPACE.

(@ "Sublessor" shall mean the person who leases or rents out a residential unit OR
COMMERCIAL SPACE leased to him by an owner.

(b) "Sublessee" shall mean the person who leases or rents out a residential unit OR
COMMERCIAL SPACE from a sublessor.”

SECTION 4. Sec. 4 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 4. Limit on Increases in Rent. - For a period of one (1) year from its effectivity, no increase
shall be imposed upon the rent of any residential unit OR COMMERCIAL SPACE covered by this
Act: Provided, that after such period until December 31, 2013, the rent of any residential unit
covered by this Act shall not be increased by more than seven (7%) annually as long as the unit is
occupied by the same lessee: Provided, further, That when the residential unit OR COMMERCIAL
SPACE becomes vacant, the lessor may set the initial rent for the next lessee: Provided, however,
That in the case of boarding houses, dormitories, rooms and bedspaces offered for rent to students,
‘no increase in rental more than once per year shall be allowed.”

SECTION 5. Sec. 5 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 5. Coverage of this Act. - All residential units in the National Capital Region and other highly
urbanized cities the total monthly rent for each of which ranges from One peso (P1,00) to Ten
thousand pesos (P10,000.00) and all residential units in all other areas the total monthly rent for each
of which ranges from One peso (P1.00) to Five thousand pesos (P5,000.00) as of the effectivity date
of this Act shall be covered, without prejudice to existing contracts. THE SAME APPLIES TO
ALL COMMERCIAL SPACES IN HIGHLY URBANIZED C) WITH A TOTAL
MONTHLY RENT RANGING FROM ONE PESO (?1.00) TO THIRTY THOUSAND PESOS.
(P30,000.00) AND ALL COMMERCIAL SPACES IN ALL OTHER AREAS WITH A TOTAL
MONTHLY RENT RANGING FROM ONE PESO (P1.00) TO TWENTY THOUSAND
PESOS (P20,000.00).”

SECTION 6. Sec. 6 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 6. Authority of Rental Regulation. — Notwithstanding the lapse of the period provided in

ction 4 of this Act, the Housing and Urban Development Coordinating Council (HUDCC) AND
THE DEPARTMENT OF TRADE AND INDUSTRY (DTI) IS HEREBY GRANTED
SEPARATE AUTHORITIES TO REGULATE the rental of certain residential units AND
COMMERCIAL SPACES, to determine the period of regulation and its subsequent extensions if
warranted, to determine the residential units AND COMMERCIAL SPACES covered and to adjust
the allowable limit on rental increases per annum, taking into consideration, among others, National
Statistics Office (NSO) census on rental units, prevailing rental rates, the monthly
inflation rate on rentals of the immediately preceding year, and rental price index.

SECTION 7. Sec. 9 of Republic Act No. 9653 is hereby amended to read as follows:


“@

XXXXX

Provided, however, That the new rent shall be reasonably commensurate with the expenses incurred
for the repair of the said residential unit OR COMMERCIAL SPACE and: Provided, finally, That if
the residential unit OR COMMERCIAL SPACE is condemned or completely demolished, the lease

of the new building will no longer be subject to the aforementioned first preference rule in this
subsection;”

SECTION 8. Sec. 12 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 12. Application of the Civil Code and Rules of Coust of the Philippines. - Except when the
lease is for a definite period, the provision of paragraph (1) of Article 1673 of the Civil Code of the
Philippines, insofar as they refer to residential units AND COMMERCIAL SPACES covered by this
Act, shall be suspended during the effectivity of this Act, but other provisions of the Civil Code and
the Rules of Court on lease contracts, insofar as they are not in conflict with the provisions of this
Act shall apply.”

SECTION 9. Sec. 15 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 15. Review of the Rental Regulation ~ The HUDCC AND THE DT] are hereby mandated to
conduct every three (3) years from the effectivity of this Act a review of its implementation and a
study on rental regulation, and submit to Congress its recommendation on whether a
continuing regulation is still necessary or deregulation is already warranted.”

SECTION 10. Sec. 16 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 17. Program to Cushion Impact in the Event of a Regulation-Free Rental Housing Market.
The HUDCC and its attached agencies AND THE DTI are hereby mandated to

SEPARATELY formulate and implement a two (2) year transition program which will provide for
safety measures to cushion the impact in the event of a regulation-free housing market.”

SECTION 11. Constitutionality. Should any provision of this Act be declared invalid or
unconstitutional, the validity or constitutionality of the other provisions shall not be affected
thereby.

SECTION 12. Repealing Clause. All laws, decrees, letters of instructions, resolutions, orders,
ordinances ot parts thereof which are inconsistent with the provisions of this Act, are hereby
repealed, amended, or modified accordingly.

SECTION 13. Effectivity. This Act shall take effect fifteen (15) days after its publication in two (2)
‘newspapers of general circulation.

Approved,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.

Introduced by Rep. TEDDY A. CASINO

EXPLANATORY NOTE

Government statistics show that out of the 780,437 business enterprises operating in the Philippines,
99.6% (777,357) are micro, small and medium enterprises. Of this number, 91.4% (710,822) are
micro enterprises and 8.2% (63,526) are small enterprises.

Involved in manufacturing, wholesale and retail trade, restaurants and services, micro and small and
enterprises contribute around 30.4% (1,731,082) and 25.5% (1,449,033), respectively, of the total
jobs generated by businesses each year. These businesses contribute a large portion of the
manufacturing and export sales of the country. Itis for these reasons that the government needs to
extend additional support to said enterprises.

Given their frail nature as start-up and developing businesses, it is crucial that the State creates an
environment that will encourage their growth and expansion, and most importantly, survival,

Rent is among the largest expenses in running a business. This bill aims to put a cap on the increases
of rent of commercial spaces, in the process expanding Republic Act no. 9653 or the Rent Control
Act of 2009. This would allow micro and small business to use money otherwise spent on exorbitant
rent hikes for their capital, labor and other operationai expenses.

In this light, the passage of this bill is carnestly sought.
Approved,
Mado

TEDDY A. CASINO
Bayan Muna Party-list

|: estes R38


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.

Introduced by Rep. TEDDY A. CASINO

AN ACT EXPANDING REPUBLIC ACT NO. 9653
OR THE RENT CONTROL ACT OF 2009 TO INCLUDE
MICRO AND SMALL BUSINESS ENTERPRISES
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. This Act shall be known as “Expanded Rent Control Act of 2011.”

SECTION 2. Sec. 2 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 2 Declaration of Poli State shall, for the common good, undertake a continuing
program of encouraging the development of affordable housing AND COMMERCIAL SPACES
for the lower income brackets, other beneficiaries AND MICRO AND SMALL BUSINE
ENTERPRISES (MSBEs).

Toward this end, the State shall continue to protect housing tenants in the lower income brackets
AND MSBES from unreasonable rent increases.”

SECTION 3. Sec. 3 of Republic Act No. 9653 is hereby amended to read as follows:
“Sec. 4. Definition of Terms. — The following terms as used in this Act shall be understood as:

(@) “Rent” shall mean the amount paid for the use or occupancy of a residential unit OR
COMMERCIAL SPACE whether payment is made on a monthly or other basis.

(b) “Residential unit”

XXXXK

(© “COMMERCIAL SPACE” shall refer to any building and its units, stalls or any space
allotted for commercial purposes.

(@) “Immediate members of family of the lessee or lessor”

XXXXX


(©) “Lessee” shall mean the person renting a residential unit OR COMMERCIAL SPACE.

(8 “Owner/Lessor” shall include the owner or administrator or agent of the owner of the
residential unit OR COMMERCIAL SPACE.

(@ "Sublessor" shall mean the person who leases or rents out a residential unit OR
COMMERCIAL SPACE leased to him by an owner.

(b) "Sublessee” shall mean the person who leases or rents out a residential unit OR
COMMERCIAL SPACE from a sublessor.”

SECTION 4. Sec. 4 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 4, Limit on Increases in Rent. - For a period of one (1) year from its effectivity, no increase
shall be imposed upon the rent of any residential unit OR COMMERCIAL SPACE covered by this
Act: Provided, that after such period until December 31, 2013, the rent of any residential unit
covered by this Act shall not be increased by more than seven (7%) annually as long as the unit is
occupied by the same lessee: Provided, further, That when the residential unit OR COMMERCIAL
SPACE becomes vacant, the lessor may set the initial rent for the next lessee: Provided, however,
‘That in the case of boarding houses, dormitories, rooms and bedspaces offered for rent to students,
no increase in rental more than once per year shall be allowed.”

SECTION 5. Sec. 5 of Republic Act No. 9653 is hereby amended to read as follow:

“Sec, 5. Coverage of this Act. - All residential units in the National Capital Region and other highly
urbanized cities the total monthly rent for each of which ranges from One peso (P1,00) to Ten
thousand pesos (P10,000.00) and all residential units in all other areas the total monthly rent for each
of which ranges from One peso (P1.00) to Five thousand pesos (P5,000.00) as of the effectivity date
of this Act shall be covered, without prejudice to existing contracts. THE SAME APPLIES TO
ALL COMMERCIAL SPACES IN HIGHLY URBANIZED CITIES WITH A TOTAL
MONTHLY RENT RANGING FROM ONE PESO (P1.00) TO THIRTY THOUSAND PESOS
(P30,000.00) AND ALL COMMERCIAL SPACES IN ALL OTE AREAS WITH A TOTAL
MONTHLY RENT RANGING FROM ONE PESO (P1.00) TO TWENTY THOUSAND
PESOS (P20,000.00).”

SECTION 6. Sec. 6 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 6. Authority of Rental Regulation. — Notwithstanding the lapse of the period provided in
Section 4 of this Act, the Housing and Urban Development Coordinating Council (HUDCC) AND
‘THE DEPARTMENT OF TRADE AND INDUSTRY (DTI) IS HEREBY GRANTED
SEPARATE AUTHORITIES TO REGULATE the rental of certain residential units AND
COMMERCIAL SPACES, to determine the period of regulation and its subsequent extensions if
warranted, to determine the residential units AND COMMERCIAL SPACES covered and to adjust
the allowable limit on rental increases per ancum, taking into consideration, among others, National
Statistics Office (NSO) census on sental units, prevailing rental rates, the monthly
inflation rate on rentals of the immediately preceding year, and rental price index.

SECTION 7. Sec. 9 of Republic Act No. 9653 is hereby amended to read as follows:


Boeesd

“@

XXX

Provided, however, That the new rent shall be reasonably commensurate with the expenses incurred
for the repair of the said residential unit OR COMMERCIAL SPACE and: Provided, finally, That if
the residential unit OR COMMERCIAL SPACE is condemned or completely demolished, the lease

of the new building will no longer be subject to the aforementioned first preference rule in this
subsection;”

SECTION 8. Sec. 12 of Republic Act No. 9653 is hereby amended to read as follows:

“Sec. 12. Application of the Civil Code and Rules of Court of the Philippines. - Except when the
lease is for a definite period, the provision of paragraph (1) of Article 1673 of the Civil Code of the
Philippines, insofar as they refer to residential units AND COMMERCIAL SPACES covered by this
Act, shall be suspended during the effectivity of this Act, but other provisions of the Civil Code and
the Rules of Court on lease contracts, insofar as they are not in conflict with the provisions of this
Act shall apply.”

SECTION 9. Sec. 15 of Republic Act No. 9653 is hereby amended to read as follows:

“See. 15. Review of the Rental Regulation ~ The HUDCC AND THE DTI are hereby mandated to
conduct every three (3) years from the effectivity of this Act a review of its implementation and a
study on rental regulation, and submit to Congress its recommendation on whether a
continuing regulation is still necessary or deregulation is already warranted.”

SECTION 10. Sec. 16 of Republic Act No. 9653 is hereby amended to read as follows:

“See. 17. Program to Cushion Impact in the Event of a Regulation-Free Rental Housing Market.
The HUDCC and its attached agencies AND THE DTI are hereby mandated to
SEPARATELY formulate and implement a two (2) year transition program which will provide for
safety measures to cushion the impact in the event of a regulation-free housing market.”

SECTION 1. Constitutionality. Should any provision of this Act be declared invalid or
unconstitutional, the validity or constitutionality of the other provisions shall not be affected
thereby

SECTION 12. Repealing Clause. All laws, decrees, letters of instructions, resolutions, orders,
ordinances ot parts thereof which are inconsistent with the provisions of this Act, are hereby

repealed, amended, or modified accordingly.

SECTION 13. Efiectivity, This Act shall take effect fifteen (15) days after its publication in two (2)
newspapers of general circulation. °

Approved,