S. No. 1963 H. No.

6098

Republic of the Philippines

Congress of the Philippines

Metro Manila Fourteenth Congress Second Regular Session Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thou and eight.

Republic Act No. 9653

AN ACT ESTABLISHING REFORMS IN THE REGULATION OF RENT OF CERTAIN RESIDENTIAL UNITS !RO"IDING THE MECHANISMS THEREFOR AND FOR OTHER !UR!OSES. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: S!"#$%N 1. Short Title. - #hi &'t hall (e )nown and 'ited a the "Rent Control Act of !!"#" S!". *. $eclaration of Policy. - #he State hall, for the 'o++on good, underta)e a 'ontinuing ,rogra+ of en'ouraging the de-elo,+ent of afforda(le hou ing for the lower in'o+e (ra')et and other (enefi'iarie . #oward thi end, the State hall 'ontinue to ,rote't hou ing tenant in the lower in'o+e (ra')et and other (enefi'iarie fro+ unrea ona(le rent in'rea e . S!". 3. $efinition of Terms. - #he following ter+ a u ed in thi &'t hall (e under tood a . /a0 12ent1 hall +ean the a+ount ,aid for the u e or o''u,an'y of a re idential unit whether ,ay+ent i +ade on a +onthly or other (a i . /(0 12e idential unit1 hall refer to an a,art+ent, hou e and3or land on whi'h another4 dwelling i lo'ated and u ed for re idential ,ur,o e and hall in'lude not only (uilding , ,art or unit thereof u ed olely a dwelling ,la'e , (oarding hou e , dor+itorie , roo+ and (ed ,a'e offered for rent (y their owner , e5'e,t +otel , +otel roo+ , hotel , hotel roo+ , (ut al o tho e u ed for ho+e indu trie , retail tore or other (u ine ,ur,o e if the owner thereof and hi or her fa+ily a'tually li-e therein and u e it ,rin'i,ally for dwelling ,ur,o e . /'0 1$++ediate +e+(er of fa+ily of the le ee or le or1 for ,ur,o e of re,o e ing the lea ed ,re+i e , hall (e li+ited to hi or her ,ou e, dire't de 'endant or a 'endant , (y 'on anguinity or affinity. /d0 16e ee1 hall +ean the ,er on renting a re idential unit.

/e0 1%wner36e or1 hall in'lude the owner or ad+ini trator or agent of the owner of the re idential unit. /f0 1Su(le or1 hall +ean the ,er on who lea e or rent out a re idential unit lea ed to hi+ (y an owner. /g0 1Su(le ee1 hall +ean the ,er on who lea e or rent out a re idential unit fro+ a u(le or. S!". 7. %imit on &ncreases in Rent. 8 9or a ,eriod of one /10 year fro+ it effe'ti-ity, no in'rea e hall (e i+,o ed u,on the rent of any re idential unit 'o-ered (y thi &'t. Provided, that after u'h ,eriod until :e'e+(er 31, *0l3, the rent of any re idential unit 'o-ered (y thi &'t hall not (e in'rea ed (y +ore than e-en /;<0 annually a long a the unit i o''u,ied (y the a+e le ee. Provided' further, #hat when the re idential unit (e'o+e -a'ant, the le or +ay et the initial rent for the ne5t le ee. Provided' ho(ever, #hat in the 'a e of (oarding hou e , dor+itorie , roo+ and (ed ,a'e offered for rent to tudent , no in'rea e in rental +ore than on'e ,er year hall (e allowed. S!". =. Coverage of this Act. - &ll re idential unit in the National "a,ital 2egion and other highly ur(ani>ed 'itie , the total +onthly rent for ea'h of whi'h range fro+ %ne ,e o /?1.000 to #en thou and ,e o /?10,000.000 and all re idential unit in all other area , the total +onthly rent for ea'h of whi'h range fro+ %ne ,e o /?1.000 to 9i-e thou and ,e o /?=,000.000 a of the effe'ti-ity date of thi &'t hall (e 'o-ered, without ,re@udi'e to e5i ting 'ontra't . S!". 6. Authority to Continue Rental Regulation# ) Notwith tanding the la, e of the ,eriod ,ro-ided in Se'tion 7 of thi &'t, the Hou ing and Ar(an :e-elo,+ent "oordinating "oun'il /HA:""0 i here(y granted the authority to 'ontinue the regulation of the rental of 'ertain re idential unit , to deter+ine the ,eriod of regulation and it u( eBuent e5ten ion if warranted, to deter+ine the re idential unit 'o-ered and to ad@u t the allowa(le li+it on rental in'rea e ,er annu+, ta)ing into 'on ideration, a+ong other , National Stati ti' %ffi'e /NS%0 'en u on rental unit , ,re-ailing rental rate , the +onthly inflation rate on rental of the i++ediately ,re'eding year, and rental ,ri'e inde5. S!". ;# Rent and Re*uirement of Ban+ $eposit. - 2ent hall (e ,aid in ad-an'e within the fir t fi-e /=0 day of e-ery 'urrent +onth or the (eginning of the lea e agree+ent unle the 'ontra't of lea e ,ro-ide for a later date of ,ay+ent. #he le or 'annot de+and +ore than one /10 +onth ad-an'e rent. Neither 'an he3 he de+and +ore than two /*0 +onth de,o it whi'h hall (e )e,t in a (an) under the le orC a''ount na+e during the entire duration of the lea e agree+ent. &ny and all intere t that hall a''rue therein hall (e returned to the le ee at the e5,iration of the lea e 'ontra't. $n the e-ent howe-er, that the le ee fail to ettle rent, ele'tri', tele,hone, water or u'h other utility (ill or de troy any hou e 'o+,onent and a''e orie , the de,o it and intere t therein hall (e forfeited in fa-or of the latter in the a+ount 'o++en urate to the ,e'uniary da+age done (y the for+er. S!". 8. Assignment of %ease or Subleasing. - & ign+ent of lea e or u(lea ing of the whole or any ,ortion of the re idential unit, in'luding the a''e,tan'e of (oarder or (ed ,a'er , without the written 'on ent of the owner3le or i ,rohi(ited. S!". 9. ,rounds for -udicial ./ectment. - !@e't+ent hall (e allowed on the following ground . /a0 & ign+ent of lea e or u(lea ing of re idential unit in whole or in ,art, in'luding the a''e,tan'e of (oarder or (ed ,a'er , without the written 'on ent of the owner3le orD

/(0 &rrear in ,ay+ent of rent for a total of three /30 +onth . Provided, #hat in the 'a e of refu al (y the le or to a''e,t ,ay+ent of the rent agreed u,on, the le ee +ay either de,o it, (y way of 'on ignation, the a+ount in 'ourt, or with the 'ity or +uni'i,al trea urer, a the 'a e +ay (e, or (arangay 'hair+an, or in a (an) in the na+e of and with noti'e to the le or, within one /10 +onth after the refu al of the le or to a''e,t ,ay+ent. #he le ee hall thereafter de,o it the rent within ten /100 day of e-ery 'urrent +onth. 9ailure to de,o it the rent for three /30 +onth hall 'on titute a ground for e@e't+ent. #he le or, u,on authority of the 'ourt in 'a e of 'on ignation or u,on @oint affida-it (y hi+ and the le ee to (e u(+itted to the 'ity or +uni'i,al trea urer or (arangay 'hair+an and to the (an) where de,o it wa +ade, hall (e allowed to withdraw the de,o it D /'0 6egiti+ate need of the owner3le or to re,o e hi or her ,ro,erty for hi or her own u e or for the u e of any i++ediate +e+(er of hi or her fa+ily a a re idential unit. Provided' ho(ever, #hat the lea e for a definite ,eriod ha e5,ired. Provided' further, that the le or ha gi-en the le ee the for+al noti'e three /30 +onth in ad-an'e of the le orC intention to re,o e the ,ro,erty and. Provided' finally, that the owner3le or i ,rohi(ited fro+ lea ing the re idential unit or allowing it u e (y a third ,arty for a ,eriod of at lea t /10 year fro+ the ti+e of re,o e ionD /d0 Need of the le or to +a)e ne'e ary re,air of the lea ed ,re+i e whi'h i the u(@e't of an e5i ting order of 'onde+nation (y a,,ro,riate authoritie 'on'erned in order to +a)e the aid ,re+i e afe and ha(ita(le. Provided, #hat after aid re,air, the le ee e@e'ted hall ha-e the fir t ,referen'e to lea e the a+e ,re+i e . Provided' ho(ever, #hat the new rent hall (e rea ona(ly 'o++en urate with the e5,en e in'urred for the re,air of the aid re idential unit and. Provided' finally, #hat if the re idential unit i 'onde+ned or 'o+,letely de+oli hed, the lea e of the new (uilding will no longer (e u(@e't to the afore+entioned fir t ,referen'e rule in thi u( e'tionD and /e0 !5,iration of the ,eriod of the lea e 'ontra't. S!". 10. Prohibition Against ./ectment by Reason of Sale or 0ortgage. - No le or or hi u''e or-in-intere t hall (e entitled to e@e't the le ee u,on the ground that the lea ed ,re+i e ha-e (een old or +ortgaged to a third ,er on regardle of whether the lea e or +ortgage i regi tered or not. S!". 11. Rent1to12(n Scheme. - &t the o,tion of the le or, he or he +ay engage the le ee in a written rent-to-own agree+ent that will re ult in the tran fer of owner hi, of the ,arti'ular dwelling in fa-or of the latter. Su'h an agree+ent hall (e e5e+,t fro+ the 'o-erage of Se'tion = of thi &'t. S!". 1*. Application of the Civil Code and Rules of Court of the Philippines. - !5'e,t when the lea e i for a definite ,eriod, the ,ro-i ion of ,aragra,h /10 of &rti'le 16;3 of the "i-il "ode of the ?hili,,ine , in ofar a they refer to re idential unit 'o-ered (y thi &'t, hall (e u ,ended during the effe'ti-ity of thi &'t, (ut other ,ro-i ion of the "i-il "ode and the 2ule of "ourt on lea e 'ontra't , in ofar a they are not in 'onfli't with the ,ro-i ion of thi &'t hall a,,ly. S!". 13. Penalties. - & fine of not le than #wenty-fi-e thou and ,e o /?*=,000.000 nor +ore than 9ifty thou and ,e o /?=0,000.000 or i+,ri on+ent of not le than one /10 +onth and one /10 day to not +ore than i5 /60 +onth or (oth hall (e i+,o ed on any ,er on, natural or @uridi'al, found guilty of -iolating any ,ro-i ion of thi &'t. S!". 17. &nformation $rive. - #he :e,art+ent of the $nterior and 6o'al Eo-ern+ent and the HA:"", in 'oordination with other 'on'erned agen'ie , are here(y +andated to 'ondu't a 'ontinuing infor+ation dri-e a(out the ,ro-i ion of thi &'t, whi'h hall (e tran lated and (e

+ade a-aila(le in +a@or regional diale't and hall (e ,o ted in 'on ,i'uou ,u(li' ,la'e , in'luding (arangay hall . S!". 1=. Revie( of the Rental Regulation ) #he HA:"" i here(y +andated to 'ondu't e-ery three /30 year fro+ the effe'ti-ity of thi &'t a re-iew of it i+,le+entation and a tudy on rental regulation, and u(+it to "ongre it re'o++endation on whether a 'ontinuing regulation i till ne'e ary or deregulation i already warranted. S!". 16. Program to Cushion &mpact in the .vent of a Regulation13ree Rental Housing 0ar+et ) #he HA:"" and it atta'hed agen'ie are here(y +andated to for+ulate and i+,le+ent a two /*0 year tran ition ,rogra+ whi'h will ,ro-ide for afety +ea ure to 'u hion the i+,a't in the e-ent of a regulation-free hou ing +ar)et. S!". 1;. Separability Clause. - $f any ,ro-i ion or ,art hereof i held in-alid or un'on titutional, the re+ainder of the law or the ,ro-i ion not otherwi e affe'ted hall re+ain -alid and u( i ting. S!". 18. Repealing Clause# - &ny law, ,re idential de'ree or i uan'e, e5e'uti-e order, letter of in tru'tion, ad+ini trati-e order, rule or regulation 'ontrary to or in'on i tent with the ,ro-i ion of thi &'t i here(y re,ealed, +odified or a+ended a''ordingly. S!". 19. .ffectivity Clause# - #hi &'t hall ta)e effe't (eginning fifteen /1=0 day after it 'o+,lete ,u(li'ation in at lea t two /*0 new ,a,er of general 'ir'ulation. &,,ro-ed,

?2%S?!2% ". N%E2&6!S Spea+er of the House of Representatives

JA&N ?%N"! !N2$6! President of the Senate

#hi &'t whi'h i a 'on olidation of Senate Bill No. 3163 and Hou e Bill No. 6098 wa finally ,a ed (y the Senate and the Hou e of 2e,re entati-e on May *;, *009 and May *6, *009, re ,e'ti-ely.

M&2$6FN B. B&2A&-F&? Secretary ,eneral House of Representatives &,,ro-ed. JA6 17 *009

!MM& 6$2$%-2!F!S Secretary of the Senate

GLORIA MACA!AGAL ARRO#O ?re ident of the 2e,u(li' of the ?hili,,ine