Republic of the Philippines

Office of the President

HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL

HUDCC RESOLUTION NO.1

Series of 2015

ADJUSTMENT OF COVERAGE AND RATES OF INCREASES OF

THE RENT CONTROL ACT

under Section 2 of Republic Act (RA) No. 9653, otherwise

WHEREAS,
known as the Rent Control Act of 2009, the State shall continue to protect
housing tenants in the lower income brackets and other beneficiaries from
unreasonable rent increases;

the said law mandates that the rent of any residential unit
WHEREAS,
with a total monthly rent of up to Php10,OOO.00 in the National Capital
Region (NCR) and other highly urbanized cities, or up to Php5,OOO.00in all
other areas, shall not be increased by more than seven percent (70/0)
annually as long as the unit is occupied by the same lessee;

the Housing and Urban Development Coordinating Council

WHEREAS,
(HUDCC) has been granted the authority to continue the regulation of the
rental of certain residential units, to determine the period of regulation and
its subsequent extensions, if warranted, to determine the residential units
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, monthly inflation rate on
rentals of the immediately preceding year, and rental price index":

WHEREAS,pursuant to the said authority, the HUDCC commissioned

the Statistical Research and Training Center (SRTC), an attached agency of
the National Economic and Development Authority (NEDA), to conduct a
study on rental regulation;

WHEREAS, on 16 December 2013, the HUDC Council approved

HUDCC Resolution No. 2 Series of 2013 extending the period of regulation
for the Rent Control Act coverage, at status quo rates, until 31 December
2015, in light of the required validation and additional data for a more
comprehensive recommendation such as the Wholesale Price Index for
Construction Materials, Real Estate Price Index and Depreciation Costs,
among others;

1 Section 6 of Republic Act No. 9653

9th & 15th Floor, Banco de Oro Plaza, Paseo de Roxas, City of Makati Tel. Nos.811-4116 to 17,811-4167 to 68, 811-4170 to 73, 811-4112 to 13, 811-4159, 811-4220, 811-4223, 811-4250
812-9229.817-8964.893-3700.812-0735.893-0749,817-6995
Fax, Nos, 811-4158 (Office of the Chairman) *811-4118 (AFG)
Website: http://www.hudcc.gov.ph
 WHEREAS, the SRTC, now the Philippine Statistical Research and
Training Institute (PSRTI), has concluded a comprehensive study on rental
regulation and has submitted its recommendation;

WHEREAS, considering certain limitations of the PSRTI study, the

Council considered other variations of the PSRTI's initial recommendations
summarized as follows:

Option 1 - Regulate rental increases of residential units below

Php4,000 at inflation rate, as proposed by the PSRTI

Option 2 - Maintain the status quo and come up with a program to

cushion the effect of rental deregulation

Option 3 - Regulate rental increases of residential unit below Php4,000

at inflation rate, and of units leased at Php4,000 to PhplO,OOO at the
rate of 7%

WHEREAS, the Council acknowledged that the PSRTI findings do not

include an assessment of the supply of rental housing units.

THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED

THAT the HUDC Council, pursuant to its mandate enshrined in RA No. 9653,
implements the continued regulation of rent to cover all private residential
units in the country with monthly rent of Php10,000 subject to the following
conditions:

a. After the expiration of RA No. 9653 or the Rent Control Act of 2009
on 31 December 2015, rent control shall continue for a period of
two years or from 01 January 2016 to 31 December 2017 using the
inflation rate for 2014 of 4.1 % as basis for adjustment.

b. The rent of any residential unit shall be increased by not more

than:

i. Four percent (4%) annually for those paying a monthly rent/

ranging from Php1.0 to Php3,999 per month; and
ii. Seven percent (7%) for those paying a monthly rent of Php4,000
up to PhplO,OOO for as long as the unit is occupied by the same
lessee.
 c. Provided, that when the residential unit becomes vacant, the lessor
may set the initial rent for the next lessee: Provided, further, that
in the case of boarding houses, dormitories, rooms and bedspaces
offered for rent to students, no increase in rent more than once per
year shall be allowed.

RESOLVED, FURTHER, THAT rental regulation shall not apply to new

residential units, offered for lease, which will be constructed after the
approval of this Resolution.

APPROVED this 08 June 2015, at Pasay City, Philippines.