JAN.

17, 2012 DATE

NR # 2651
REF. NO.

Expansion of Rent Control Act of 2009 sought

A lawmaker has filed a measure seeking to expand Republic Act 9653 otherwise known as the Rent Control Act of 2009 by including micro and small business enterprises. Rep. Teddy Casio (Party-list, Bayan Muna) said House Bill 5636 will put a cap on increases in rentals of commercial spaces, one of the biggest expenses in business operations. This would allow micro and small business to use money otherwise spent on exorbitant rent hikes for their capital, labor and other operational expenses, Casio said. The bill seeks to amend Sections 2, 3, 4, 5, 6, 9, 12, 15 and 16 of R.A. 9653. Casio said government statistics show that of the 780,437 business enterprises operating in the country, 99.6% (777,357) are micro, small and medium enterprises. Of this number, 91.4% (710,822) are micro enterprises and 8.2% (63,526) are small enterprises, he said. According to Casio, those involved in manufacturing, wholesale and retail trade, restaurants and services, micro and small enterprises contribute around 30.4% (1,731,082) and 25.5% (1,449,033), respectively of the total jobs generated by businesses each year. These businesses contribute a large portion of the manufacturing and export sales of the country. It is for these reasons that the government needs to extend additional support to said enterprises, Casio said. Casio said given their frail nature as start-up and developing businesses, it is crucial that the State creates an environment that will encourage their growth and expansion and most importantly, survival. The measure to be known as the Expanded Rent Control Act, includes the words or commercial space in the definition of terms under Section 3; Limit on Increases in Rent under Section 4 and in Section 9. Likewise, aside from residential units, all commercial spaces in highly urbanized cities with a total monthly rent ranging from P1 to P30,000 and all commercial spaces in all other areas with a total monthly rent ranging from P1 to P20,000 are included in the coverage of this Act. Under the bill, the Department of Trade and Industry (DTI) is now included as one of the authorities of rental regulation granted with separate authority from the Housing and Urban Development Coordinating Council (HUDCC). The HUDCC and the DTI are mandated to separately formulate and implement a two (2) year transition program which will provide for safety measures to cushion the impact in the event of a regulation-free housing market. (30) lvc