Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FIFTEENTH CON RESS Secon!

Re"ul#$ Session HOUSE %I&& No' ()*) +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Int$o!uce! by Rep' TE,,- A' CASI.O

E/P&ANATOR- NOTE Government statistics show that out of the 780,437 business enterprises operating in the Philippines, 99.6 !777,3"7# are micro, small an$ me$ium enterprises. %f this number, 9&.4 !7&0,8''# are micro enterprises an$ 8.' !63,"'6# are small enterprises. (nvolve$ in manufacturing, wholesale an$ retail tra$e, restaurants an$ services, micro an$ small an$ enterprises contribute aroun$ 30.4 !&,73&,08'# an$ '"." !&,449,033#, respectivel), of the total *obs generate$ b) businesses each )ear. +hese businesses contribute a large portion of the manufacturing an$ e,port sales of the countr). (t is for these reasons that the government nee$s to e,ten$ a$$itional support to sai$ enterprises. Given their frail nature as start-up an$ $eveloping businesses, it is crucial that the .tate creates an environment that will encourage their growth an$ e,pansion, an$ most importantl), survival. /ent is among the largest e,penses in running a business. +his bill aims to put a cap on the increases of rent of commercial spaces, in the process e,pan$ing /epublic 0ct no. 96"3 or the /ent 1ontrol 0ct of '009. +his woul$ allow micro an$ small business to use mone) otherwise spent on e,orbitant rent hi2es for their capital, labor an$ other operational e,penses. (n this light, the passage of this bill is earnestl) sought. Approved,

TE,,- A' CASI.O

%#y#n 0un# P#$ty1list Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FIFTEENTH CON RESS Secon! Re"ul#$ Session HOUSE %I&& No' ()*) +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ + Int$o!uce! by Rep' TE,,- A' CASI.O AN ACT E/PAN,IN REPU%&IC ACT NO' 2)(* OR THE RENT CONTRO& ACT OF 3442 TO INC&U,E 0ICRO AN, S0A&& %USINESS ENTERPRISES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: SECTION 5' Short Title. +his 0ct shall be 2nown as 34,pan$e$ /ent 1ontrol 0ct of '0&&.5 SECTION 3' .ec. ' of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 3.ec. ' 8eclaration of Polic). 9 +he .tate shall, for the common goo$, un$erta2e a continuing program of encouraging the $evelopment of affor$able housing 068 1%::4/1(0; .P014. for the lower income brac2ets, other beneficiaries 068 :(1/% 068 .:0;; <=.(64.. 46+4/P/(.4. !:.<4s#. +owar$ this en$, the .tate shall continue to protect housing tenants in the lower income brac2ets 068 :.<4. from unreasonable rent increases.5 SECTION *' .ec. 3 of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 3.ec. 4. 8efinition of +erms. 9 +he following terms as use$ in this 0ct shall be un$erstoo$ as7 !a# 3/ent5 shall mean the amount pai$ for the use or occupanc) of a resi$ential unit %/ 1%::4/1(0; .P014 whether pa)ment is ma$e on a monthl) or other basis. !b# 3/esi$ential unit5 ,,,,, !c# 31%::4/1(0; .P0145 shall refer to an) buil$ing an$ its units, stalls or an) space allotte$ for commercial purposes.

!$# 3(mme$iate members of famil) of the lessee or lessor5 ,,,,, !e# 3;essee5 shall mean the person renting a resi$ential unit %/ 1%::4/1(0; .P014. !f# 3%wner>;essor5 shall inclu$e the owner or a$ministrator or agent of the owner of the resi$ential unit %/ 1%::4/1(0; .P014. !g# ?.ublessor? shall mean the person who leases or rents out a resi$ential unit %/ 1%::4/1(0; .P014 lease$ to him b) an owner. !h# ?.ublessee? shall mean the person who leases or rents out a resi$ential unit %/ 1%::4/1(0; .P014 from a sublessor.5 SECTION 6' .ec. 4 of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 3.ec. 4. ;imit on (ncreases in /ent. - @or a perio$ of one !&# )ear from its effectivit), no increase shall be impose$ upon the rent of an) resi$ential unit %/ 1%::4/1(0; .P014 covere$ b) this 0ct7 Provi$e$, that after such perio$ until 8ecember 3&, '0l3, the rent of an) resi$ential unit covere$ b) this 0ct shall not be increase$ b) more than seven !7 # annuall) as long as the unit is occupie$ b) the same lessee7 Provi$e$, further, +hat when the resi$ential unit %/ 1%::4/1(0; .P014 becomes vacant, the lessor ma) set the initial rent for the ne,t lessee7 Provi$e$, however, +hat in the case of boar$ing houses, $ormitories, rooms an$ be$spaces offere$ for rent to stu$ents, no increase in rental more than once per )ear shall be allowe$.5 SECTION (' .ec. " of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 3.ec. ". 1overage of this 0ct. - 0ll resi$ential units in the 6ational 1apital /egion an$ other highl) urbaniAe$ cities the total monthl) rent for each of which ranges from %ne peso !P&.00# to +en thousan$ pesos !P&0,000.00# an$ all resi$ential units in all other areas the total monthl) rent for each of which ranges from %ne peso !P&.00# to @ive thousan$ pesos !P",000.00# as of the effectivit) $ate of this 0ct shall be covere$, without pre*u$ice to e,isting contracts. +B4 .0:4 0PP;(4. +% 0;; 1%::4/1(0; .P014. (6 B(GB;C =/<06(D48 1(+(4. E(+B 0 +%+0; :%6+B;C /46+ /06G(6G @/%: %64 P4.% !P&.00# +% +B(/+C +B%=.068 P4.%. !P30,000.00# 068 0;; 1%::4/1(0; .P014. (6 0;; %+B4/ 0/40. E(+B 0 +%+0; :%6+B;C /46+ /06G(6G @/%: %64 P4.% !P&.00# +% +E46+C +B%=.068 P4.%. !P'0,000.00#.5 SECTION )' .ec. 6 of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 3.ec. 6. 0uthorit) of /ental /egulation. 9 6otwithstan$ing the lapse of the perio$ provi$e$ in .ection 4 of this 0ct, the Bousing an$ =rban 8evelopment 1oor$inating 1ouncil !B=811# 068 +B4 84P0/+:46+ %@ +/084 068 (68=.+/C !8+(# (. B4/4<C G/06+48 .4P0/0+4 0=+B%/(+(4. +% /4G=;0+4 the rental of certain resi$ential units 068 1%::4/1(0; .P014., to $etermine the perio$ of regulation an$ its subseFuent e,tensions if

warrante$, to $etermine the resi$ential units 068 1%::4/1(0; .P014. covere$ an$ to a$*ust the allowable limit on rental increases per annum, ta2ing into consi$eration, among others, 6ational .tatistics %ffice !6.%# census on rental units, prevailing rental rates, the monthl) inflation rate on rentals of the imme$iatel) prece$ing )ear, an$ rental price in$e,. SECTION 7' .ec. 9 of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 ,,,,, 3!$# ,,,,, Provi$e$, however, +hat the new rent shall be reasonabl) commensurate with the e,penses incurre$ for the repair of the sai$ resi$ential unit %/ 1%::4/1(0; .P014 an$7 Provi$e$, finall), +hat if the resi$ential unit %/ 1%::4/1(0; .P014 is con$emne$ or completel) $emolishe$, the lease of the new buil$ing will no longer be sub*ect to the aforementione$ first preference rule in this subsectionG5 SECTION 8' .ec. &' of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 3.ec. &'. 0pplication of the 1ivil 1o$e an$ /ules of 1ourt of the Philippines. - 4,cept when the lease is for a $efinite perio$, the provision of paragraph !&# of 0rticle &673 of the 1ivil 1o$e of the Philippines, insofar as the) refer to resi$ential units 068 1%::4/1(0; .P014. covere$ b) this 0ct, shall be suspen$e$ $uring the effectivit) of this 0ct, but other provisions of the 1ivil 1o$e an$ the /ules of 1ourt on lease contracts, insofar as the) are not in conflict with the provisions of this 0ct shall appl).5 SECTION 2' .ec. &" of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 3.ec. &". /eview of the /ental /egulation 9 +he B=811 068 +B4 8+( are hereb) man$ate$ to con$uct ever) three !3# )ears from the effectivit) of this 0ct a review of its implementation an$ a stu$) on rental regulation, an$ submit to 1ongress its recommen$ation on whether a continuing regulation is still necessar) or $eregulation is alrea$) warrante$.5 SECTION 54' .ec. &6 of /epublic 0ct 6o. 96"3 is hereb) amen$e$ to rea$ as follows7 3.ec. &7. Program to 1ushion (mpact in the 4vent of a /egulation-@ree /ental Bousing :ar2et. +he B=811 an$ its attache$ agencies 068 +B4 8+( are hereb) man$ate$ to .4P0/0+4;C formulate an$ implement a two !'# )ear transition program which will provi$e for safet) measures to cushion the impact in the event of a regulation-free housing mar2et.5 SECTION 55' Constitutionality' .houl$ an) provision of this 0ct be $eclare$ invali$ or unconstitutional, the vali$it) or constitutionalit) of the other provisions shall not be affecte$ thereb).

SECTION 53' Repealing Clause' 0ll laws, $ecrees, letters of instructions, resolutions, or$ers, or$inances or parts thereof which are inconsistent with the provisions of this 0ct, are hereb) repeale$, amen$e$, or mo$ifie$ accor$ingl). SECTION 5*' Effectivity. +his 0ct shall ta2e effect fifteen !&"# $a)s after its publication in two !'# newspapers of general circulation. Approved,