Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

3558

HOUSE BILL No.

Introduced by: Representative MEL SENEN S. SARMIENTO

EXPLANATORY NOTE

The average Philippine household income in 2012 amounted to P234,000,00.!
Rent took up 12.50 percent of the average household income after food, ranking second
in terms of priority for household expenditures. The importance given to house rent is
far greater than that for other basic necessities such as education and for health, at 4.2%
and 3.8% share from income respectively,

Households in the richest income decile earned an average income of P715,000.00
in 2012, spending an average of 13.30% on house rent. Households in the poorest
income decile earned an average of P69,000.00, with an average spending of 7.90% on
house rent. The disparity between the richest and poorest deciles remains great in terms
of expenditure and savings; while total expenditures of households in the richest
income decile amounted to P463,000.00, leaving P252,000.00 for savings, the total
expenditures of households in the poorest income decile is P73,000.00, which exceeded
their average income, thereby leaving nothing for savings. For all income deciles, food
remains top priority followed by house rent.

In the latest 2009 survey, of the 18,452,000 families, 1,636,000 mostly from NCR,
relied on renting a house, room, or lot? About 1,841,000 families from the poorest
income decile paid rent of less than P2,000.00; while 5,000 families had rental expenses
ranging from P2,000.00 toP5,999.00, and for the four bottom income deciles, no family
had been noted to spend on rent higher than P6,000.00.

1 National Statistics Office Family Income and Expenditure Survey (FIES) 2012
2 National Statistics Office Family Income and Expenditure Survey (FIES) 2009


Rent Control is a mechanism that ensures affordable housing in the Philippines.
It also safeguards lessees from arbitrary rent increases and corollary ejectment. There
have been measures to control rent since the 1970s and to this day there is an apparent
need to extend the duration of the Rent Control Act to continue providing affordable
housing for Filipinos, targeting in particular the lower income groups.

This bill extends the period from December 31, 2013 to December 31, 2017 within
which the rent of any residential unit covered by RA 9653 shall not be increased by
more than 7% annually as long as the unit is occupied by the same lessee. Residential
‘units refer not only to houses, apartments and land where another's dwelling is located,
but to boarding houses, dormitories and bed spaces as well.

The passage of this bill will ensure that lower income families will continue to be
guaranteed affordable housing options and will prevent them from resorting to
informal housing settlements. In the light of the foregoing, the approval of this bill is
earnestly sought.

MEL RO tee


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

3558

HOUSE BILL No.

Introduced by: Representative MEL SENEN S. SARMIENTO.

AN ACT
EXTENDING THE RENT CONTROL PERIOD OF RESIDENTIAL UNITS,
AMENDING THEREBY REPUBLIC ACT NO. 9653 ENTITLED: "AN ACT
ESTBALISHING REFORMS IN THE REGULATION OF RENT OF CERTAIN
RESIDENTIAL UNITS, PROVIDING THE MECHANISMS THEREFOR AND FOR
OTHER PURPOSES"

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 4 of RepubJic Act No. 9653 is hereby amended to read as follows:

"Sec. 4. Limit on Increases in Rent. - For a period of one (I) year from its effectivity,
no increase shall be imposed upon the rent of any residential unit covered by this Act
Provided, That after such period until December 31, [2013] 2017, the rent of any
residential unit covered by this Act shall not be increased by more than seven percent
(7%) annually as long as the unit is occupied by the same lessee: Provided, further, That
when the residential unit 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".

SEC. 2. Repealing Clause. - Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent
with the provisions of this Act is hereby repealed, modified or amended accordingly.
SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days following its publication
in at least two (2) newspapers of general circulation or in the Official Gazette.

Approved,