5 M households to benefit from new rent control measure

Some five million households leasing residential units stand to benefit from the new rent control bill passed by House of Representatives, Majority Leader Eduardo Gullas (LAMP, Cebu City) said over the weekend.

Under House Bill 11997, Gullas said the rent control would cover dwelling units with monthly lease not exceeding P7,500 at the time the bill is enacted into law.

The bill seeks to extend the Rent Control Law that would expire December next year, according to Gullas.

He said the bill provides that the monthly lease may be increased by a maximum of only 10 percent annually over a four-year period, or from Jan. 1, 2002 to Dec. 31, 2005.

Among the beneficiaries would be daily wage workers and students, Gullas said, adding that the measure has been expanded to cover the lease for apartments, boarding houses, dormitories, rooms and bed spaces.

The Cebu lawmaker said the rent control would cover residential units that are partly being used by households for commercial purposes, such as for sari-sari stores.

However, he said the capitalization of the commercial venture should not exceed P20,000 and the floor space that it uses should not exceed 30 percent of total floor space of the dwelling unit.

He said violators of the new rent control face one to six months in prison and/or a fine of P5,000 to P15,000.

"This early, we are committed to pass the bill to provide relief to households reeling from the lingering economic crunch," Gullas concluded.