THE Department of Human Settlements and Urban Development on Wednesday announced the National Human Settlements Board’s approval of a 4-percent increase cap for monthly residential rental rates of P10,000 and below.
This becomes effective Jan. 1 to Dec. 31, 2024 to avoid unwarranted rental rate hikes among lower income families, the DHSUD said.
Undersecretary Henry Yap said NHSB Resolution No. 2023-03, approved on Oct. 13 and published on Dec. 16 provides for the continuous implementation of rental regulation under the terms and conditions of its predecessor policy, NHSB Resolution No. 2022-01, but with modification in rate increase.
The decision was based on the recommendation of the National Economic and Development Authority to set a uniform maximum percentage increase at the upper bound of the inflation rate target of the administration.
Yap, representing DHSUD Secretary Jose Rizalino Acuzar as the NHSB chairperson, said the policy was reviewed and revised according to latest empirical studies, such as the annual family income and expenditure survey and census of population and housing.
“These data guided the decision-making process of the multi-agency NHSB to come up with the most sound, feasible and fair figure to represent the cap in rental increase,” he said.
Republic Act No. No. 9653 or the Rent Control Act of 2009 declares the State’s continuing program of encouraging the development of affordable housing to protect housing tenants in the lower-income brackets and other beneficiaries from unreasonable rent increases.
The law authorized the former Housing and Urban Development Coordinating Council to regulate rental rates of certain residential units, among other related functions.
When Republic Act No. 11021 was enacted, NHSB assumed this responsibility as the single-policy making body to provide overall directions and program development to attached shelter agencies of DSHUD.
A fine of P25,000 to P50,000 or imprisonment of not less than one month and one day to not more than six months, or both, shall be imposed on any person found guilty of violating any provision of the Act.