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REPUBLIC OF THE PHILIPPINES 
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UlT L'- 
FOURTEENTH CONGRESS OF THE 
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Second Regular Session 
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9 APR I5 P5:10 
S E N A T E  
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COMMITTEE REPORT NO. 2 9 9 
Submitted by the Committee on Urban Planning, Ho 
APR I 5 m9. 
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x. : 
Re: Senate Bill No. 8 1 6  3 
Recommending its approval in substitution of Senate Bill No. 2884, taking into 
consideration Senate Bill No. 3030. 
Sponsors: Senators Biazon and Zubiri 
MR. PRESIDENT: 
The Committee on Urban Planning, Housing and Resettlement, to which were 
referred Senate Bill No. 2884, introduced by Senator Zubiri, entitled: 
"AN ACT 
TO EXTEND THE EFFECTIVITY OF THE RENT CONTROL ACT OF 2005, AMENDING 
FOR THE PURPOSE SECTION 17 OF REPUBLIC ACT NO. 9341, ENTITLED 'AN ACT 
ESTABLISHING REFORMS IN THE REGULATION OF RENT OF CERTAIN 
RESIDENTIAL UNITS, PROVIDING MECHANISMS THEREFOR AND FOR OTHER 
PURPOSES" 
and Senate Bill No. 3030, introduced by Senator Revilla, Jr., entitled: 
"AN ACT 
REGULATING THE RENT OF CERTAIN RESIDENTIAL AND COMMERCIAL UNITS 
AND SPACES, PROVIDING MECHANISMS AND PENALTIES FOR VIOLATIONS 
THEREOF" 
has considered the same and has the honor to report them back to the Senate with the 
recommendation that the attached Senate Bill No. 
163 , prepared by the 
Committee, entitled: 
"AN ACT 
ESTABLISHING REFORMS IN THE REGULATION OF RENT OF CERTAIN 
RESIDENTIAL UNITS, PROVIDING THE MECHANISMS THEREFOR AND FOR OTHER 
PURPOSES 
be approved in substitution of S. No. 2884, taking into consideration S. No. 3030, with 
Senators Zubiri, Revilla Jr., and Biazon as authors thereof. 
Respectfullv submitted: 
ChairmM 


Members: 
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FRANCIS “CHIZ” G. ESCUDERO 
BENIGN0 S. AQUINO 111 
FRANCIS “KIKO” N. PANGILINAN 
ALAN PETER “COMPAfiERO” S. CAYETANO 
Ex-Officio Members: 
HON. JUAN PONCE ENRILE 
Senate President 
Senate of the Philippines 
Pasay City 


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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILPPINES 
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(In substitution of S. No. 2884, taking into consideration 
Prepared and submitted by the Committee on Urban Planning, Housing and Resettlement, with Senators 
Zubiri, Revilla Jr., and Biazon as authors 
AN ACT 
ESTABLISHING 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 House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Short Title. - This Act shall be known and cited as the "Rent Control Act of 
2009." 
Sec. 2. Declaration of Policy. - The State shall, for the common good, undertake a 
continuing program of encouraging the development of affordable housing for the people. 
Toward this end, the State shall continue to protect housing tenants from unreasonable rent 
increases. 
Sec. 3. Definition of Terms. - The following terms as used in this Act shall be understood 
as: 
(a) "Rent" shall mean the amount paid for the use or occupancy of a residential unit 
whether payment is made on a monthly or other basis. 
(b) "Residential unit" shall refer to an apartment, house andor land on which another's 
dwelling is located and used for residential purposes and shall include not only buildings, part OI 
units thereof used solely as dwelling places, boarding houses, dormitories, rooms and bedspaces 
offered for rent by their owners, except motels, motel rooms, hotels, hotel rooms, but also those 
used for home industries, retail stores or other business purposes if the owner thereof and his or 
her family actually live therein and use it principally for dwelling purposes. 
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(c) "Immediate inembers of family of the lessee or lessor" for purposes of repossessing 
the leased premises, shall be limited to his or her spouse, direct descendants or ascendants, by 
consanguinity or affinity. 
(d) "Lessee" shall mean the person renting a residential unit. 
(e) "Owner/Lessor" shall include the owner or administrator or agent of the owner of the 
residential unit. 
(f) "Sublessor" shall mean the person who leases or rents out a residential unit leased to 
him by an owner. 
(g) "Sublessee" shall mean the person who leases or rents out a residential unit from a 
sublessor. 
Sec. 4. Limit on Increases in Rent. - The rent of any residential unit covered by this Act 
shall not be increased by more than ten percent (10%) annually as long as the unit is occupied by 
the same lessee. When the residential unit becomes vacant, the lessor may set the initial rent for 
the next lessee. The limit on increases in rent as set forth in this Section shall be effective until 
December 3 I, 201 1, 
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 does not exceed Ten 
thousand pesos (Pl0,000.00) 
and all residential units in all other areas the total monthly rent for 
each of which does not exceed Five thousand pesos (P5,000.00) as of the effectivity date of this 
Act shall be covered, without prejudice to existing contracts. 
Sec. 6. Authority to Regulate or Deregulate Rent. - Notwithstanding the lapse of the 
effectivity of the limit on rent set forth in Section 4 hereof, the Housing and Urban Development 
Coordinating Couiicil (HUDCC), hereinafter referred to as the Council, in coordination with 
other concerned sectors, is hereby granted the authority to regulate or deregulate the rent of 
certain residential units: Provided, That one (1) year prior to the lapse of the effectivity of the 
limit on rent set forth in Section 4 hereof and its subsequent extensions, as the case may be, the 
Council shall come up with a study, to be submitted to Congress, which shall be the basis of the 
decision o f  the Council to either continue regulating or to deregulate the rent of certain 
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residential units: Provided, further, That the period of effectivity of each subsequent extension of 
regulation or deregulation of rent instituted under this Act shall not be more than three (3) years. 
If the Council decides to continue regulating the rent of certain residential units, it is also 
hereby granted the authority to determine the duration of the regulation, the residential units that 
are going to be covered by the regulation, and the limits on increases in rent. Its decision to 
continue with rent regulation shall be based on the reasonable and sound findings of its study. 
If the Council decides to deregulate the rent of certain residential units, it is also hereby 
mandated to immediately formulate, a transition program which shall also be submitted to 
Congress, that will provide for safety measures to cushion the impact of a deregulated rental 
industry: Provided, That, thereafter, the Council is also hereby granted the authority to re-impose 
the regulation o f  the rent of certain residential units, consistent with the findings of its study and 
subject to the limits on its authority granted under this Act. 
Sec. 7. Rent and Requirement ofBank Deposit. - Rent shall be paid in advance within the 
first five (5) days of every current month or the beginning of the lease agreement unless the 
contract of lease provides for a later date of payment. The lessor cannot demand more than one 
(1) month advance rent. Neither can he demand more than two (2) months deposit which shall be 
kept in a bank under the lessor's account name during the entire duration of the lease agreement. 
Any and all interest that shall accrue therein shall be returned to the lessee at the expiration of the 
lease contract. 
In the event however, that the lessee fails to settle rent, electric, telephone, water or such 
other utility bills or destroys any house components and accessories, the deposits and interests 
therein shall be forfeited in favor of the latter in the amount commensurate to the pecuniary 
damage done by the former. 
Sec. 8. Assignment ofLease or Subleasing. - Assignment of lease or subleasing of the 
whole or any portion of the residential unit, including the acceptance o f  boarders or bedspacers, 
without the written consent of the owner/lessor is prohibited. 
Sec. 9. Grounds for Judicial Ejectment. - Ejectment shall be allowed on the following 
grounds: 
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(a) Assignment of lease or subleasing of residential units in whole or in part, including 
the acceptance of boarders or bedspacers, without the written consent of the ownerilessor; 
(b) Arrears in payment of rent for a total of three (3) months: Provided, That in the case 
of refusal by the lessor to accept payment of the rent agreed upon, the lessee may either deposit, 
by way of consignation, the amount in court, or with the city or municipal treasurer, as the case 
may be, or in a bank in the name of and with notice to the lessor, within one month after the 
refusal of the lessor to accept payment. 
The lessee shall thereafter deposit the rent within ten (10) days of every current month. 
Failure to deposit the rent for three (3) months shall constitute a ground for ejectment. 
The lessor, upon authority of the court in case of consignation or upon joint affidavit by 
him and the lessee to be submitted to the city or municipal treasurer and to the bank where 
deposit was made, shall be allowed to withdraw the deposits; 
(c) Legitimate need of the owner/lessor to repossess his or her property for his or her 
own use or for the use of any immediate member of his or her family as a residential unit: 
Provided, however, That the lease for a definite period has expired: Provided, further, That the 
lessor has given the lessee the formal notice three (3) months in advance of the lessor's intention 
to repossess the property and: Provided, jhally, That the ownedlessor is prohibited from leasing 
the residential unit or allowing its use by a third party for a period of at least (1) year from the 
time of repossession; 
(d) Need of the lessor to make necessary repairs of the leased premises which is the 
subject of an existing order of condemnation by appropriate authorities concerned in order to 
male the said premises safe and habitable: Provided, That after said repair, the lessee ejected 
shalI have the first preference to lease the same premises: Provided, further, That the new rent 
shall be reasonably commensurate with the expenses incurred for the repair of the said residential 
unit and: Provided, Jinally, That if the residential unit 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; and 
(e) Expiration of the period of the lease contract. 
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Sec. 10. Prohibition Against Ejectment by Reason of Sale or Mortgage. - No lessor or his 
successor-in-interest sha!l be entitled to eject the lessee upon the ground that the leased premises 
have been sold or mortgaged to a third person regardless of whether the lease or mortgage is 
registered or not. 
Sec. 11. Rent-to-Own Scheme. At the option of the lessor, he or she may engage the 
lessee in a written rent-to-own agreement that will result in the transfer of ownership of the 
particular dwelling in favor of the latter. Such an agreement shall be exempt from the coverage 
of Section 3 of this Act. 
Sec. 12. Application of the Civil Code and Rules of Court of the Philippines. - Except 
when the lease is €or 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 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. 
Sec. 13. Penalties. - A fine of not less than Five thousand pesos (P5,OOO.OO) nor more 
than Fifteen thousand pesos (Pl5,OOO.OO) or imprisonment of not less than one (1) month and 
one (1) day to not more than six (6) months or both shall be imposed on any person, natural or 
juridical, found guilty of violating any provision of this Act. 
Sec. 14. Information Drive. - The Department of the Interior and Local Government and 
the HUDCC, in coordination with other concerned agencies, are hereby mandated to conduct a 
continuing information drive about the provisions of this Act and the subsequent policies 
implemented consistent with this Act. 
Sec. 15. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
Sec. 16. 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 *ended 
accordingly. 
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Approved, 
Sec. 17. Efictivity Cfuuse. - This Act shall take effect beginning fifteen (I 5) days after 
its complete publication in at least two (2) newspapers of general circulation. 
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