SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 1945 
Introduced by Senator Ralph G, Recto 
Explanatory Note 
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I~DV 21 
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The average Philippine household income in 2012 amounted to P234,000,00, I 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 P7l5,000,00 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 te~s 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,OOO,00; while 5,000 families had rental expenses ranging from P2,000,00 to 
P5,999,00, and for the four bottom income deciles, no family had been noted to spend on rent 
higher than P6,OOO,OO, 
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 
I National Statistics Office Family Income and Expenditure Survey (FIES) 2012 
2 National Statistics Office Family Income and Expenditure Survey (FIES) 2009 


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 infonnal housing 
settlements. In the light of the foregoing, the approval of this bill is earnestly sought. 


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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 1945 
Introduced by Senator Ralph O. Recto 
AN ACT 
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NOV 21 
[17 :30 
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 (l) 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 untH December 31, [2013] 2017, the rent of 
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any residential unit covered by this Act shall not be increased by more than seven percent 
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(7%) annually as long as the unit is occupied by the same lessee: Provided, further, That 
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when the residential unit becomes vacant, the les~or may set the initial rent for the next 
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lessee: Provided, however, That in the case of boarding houses, dormitories, rooms and 
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bedspaces offered for rent to students, no increase in rental more than once per year shall 
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be allowed". 
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SEC. 2. Repealing Cause. - Any law, presidential decree or issuance, executive order, 
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letter of instruction, administrative order, rule or regulation contrary to or inconsistent with the 
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provisions of this Act is hereby repealed, modified or amended accordingly. 
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SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days following its publication 
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in at least two (2) newspapers of general circulation or in the Official Gazette. 
Approved,