Republic of the Philippines Congress of the Philippines Metro Manila Thirteenth Congress Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-fifth day of July, two thousand and five. Republic Act No. 9341 AN ACT ESTA !"S#"N$ RE%&R'S "N T#E RE$(!AT"&N &% RENT &% CERTA"N RES")ENT"A! (N"TS* PR&+")"N$ T#E 'EC#AN"S'S T#ERE%&R AN) %&R &T#ER P(RP&SES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECT"&N 1. Short Title. - This Act shall be known and cited as the "Rent Control Act of ,--.." SEC. ,. Declaration of Policy. - The tate shall, for the co!!on good, undertake a continuing "rogra! of encouraging the develo"!ent of affordable housing for the lower inco!e brackets. Toward this end, the tate shall continue to "rotect housing tenants in the lower inco!e brackets fro! unreasonable rent increases. SEC. 3. Limit on Increases in Rent. - The rent of any residential unit covered by this Act shall not be increased by !ore than ten "ercent #$%&' annually as long as the unit is occu"ied by the sa!e lessee. (hen the residential unit beco!es vacant, the lessor !ay set the initial rent for the ne)t lessee. SEC. 4. Definition of Terms. - The following ter!s as used in this Act shall be understood as: #a' "*ent" shall !ean the a!ount "aid for the use or occu"ancy of a residential unit whether "ay!ent is !ade on a !onthly or other basis. #b' "*esidential unit" shall refer to an a"art!ent, house and+or land on which another,s dwelling is located and used for residential "ur"oses and shall include not only buildings, "art or units thereof used solely as dwelling "laces, boarding houses, dor!itories, roo!s and beds"aces offered for rent by their owners, e)ce"t !otels, !otel roo!s, hotels, hotel roo!s, but also those used for ho!e industries, retail stores or other business "ur"oses if the owner thereof and his or her fa!ily actually live therein and use it "rinci"ally for dwelling "ur"oses. #c' "-!!ediate !e!bers of fa!ily of the lessee or lessor" for "ur"oses of re"ossessing the leased "re!ises, shall be li!ited to his or her s"ouse, direct descendants or ascendants, by consanguinity or affinity.

#d' ".essee" shall !ean the "erson renting a residential unit. #e' "/wner+.essor" shall include the owner or ad!inistrator or agent of the owner of the residential unit. #f' " ublessor" shall !ean the "erson who leases or rents out a residential unit leased to hi! by an owner. #g' " ublessee" shall !ean the "erson who leases or rents out a residential unit fro! a sublessor. SEC. .. Rent and Requirement of Bank Deposit. - *ent shall be "aid in advance within the first five #0' days of every current !onth or the beginning of the lease agree!ent unless the contract of lease "rovides for a later date of "ay!ent. The lessor cannot de!and !ore than one #$' !onth advance rent. 1either can he de!and !ore than two #2' !onths de"osit which shall be ke"t in a bank under the lessor3s account na!e during the entire duration of the lease agree!ent. Any and all interest that shall accrue therein shall be returned to the lessee at the e)"iration of the lease contract. -n the event however, that the lessee fails to settle rent, electric, tele"hone, water or such other utility bills or destroys any house co!"onents and accessories, the de"osits and interests therein shall be forfeited in favor of the latter in the a!ount co!!ensurate to the "ecuniary da!age done by the for!er. SEC. /. Assignment of Lease or Su leasing. - Assign!ent of lease or subleasing of the whole or any "ortion of the residential unit, including the acce"tance of boarders or beds"acers, without the written consent of the owner+lessor is "rohibited. SEC. 0. !rounds for "udicial #$ectment. - 45ect!ent shall be allowed on the following grounds: #a' Assign!ent of lease or subleasing of residential units in whole or in "art, including the acce"tance of boarders or beds"acers, without the written consent of the owner+lessor6 #b' Arrears in "ay!ent of rent for a total of three #7' !onths: Provided, That in the case of refusal by the lessor to acce"t "ay!ent of the rent agreed u"on, the lessee !ay either de"osit, by way of consignation, the a!ount in court, or with the city or !unici"al treasurer, as the case !ay be, or in a bank in the na!e of and with notice to the lessor, within one !onth after the refusal of the lessor to acce"t "ay!ent. The lessee shall thereafter de"osit the rent within ten #$%' days of every current !onth. 8ailure to de"osit the rent for three #7' !onths shall constitute a ground for e5ect!ent. The lessor, u"on authority of the court in case of consignation or u"on 5oint affidavit by hi! and the lessee to be sub!itted to the city or !unici"al treasurer and to the bank where de"osit was !ade, shall be allowed to withdraw the de"osits6 #c' .egiti!ate need of the owner+lessor to re"ossess his or her "ro"erty for his or her own use or for the use of any i!!ediate !e!ber of his or her fa!ily as a residential unit: Provided, however, That the lease for a definite "eriod has e)"ired: Provided, further, that the lessor has given the lessee the for!al notice three #7' !onths in

advance of the lessor3s intention to re"ossess the "ro"erty and: Provided, finally, that the owner+lessor is "rohibited fro! leasing the residential unit or allowing its use by a third "arty for a "eriod of at least #$' year fro! the ti!e of re"ossession. #d' 1eed of the lessor to !ake necessary re"airs of the leased "re!ises which is the sub5ect of an e)isting order of conde!nation by a""ro"riate authorities concerned in order to !ake the said "re!ises safe and habitable: Provided, That after said re"air, the lessee e5ected shal- have the first "reference to lease the sa!e "re!ises: Provided, however, That the new rent shall be reasonably co!!ensurate with the e)"enses incurred for the re"air of the said residential unit and: Provided, finally, That if the residential unit is conde!ned or co!"letely de!olished, the lease of the new building will no longer be sub5ect to the afore!entioned first "reference rule in this subsection6 and #e' 4)"iration of the "eriod of the lease contract. SEC. 1. Prohi ition Against #$ectment y Reason of Sale or %ortgage. - 1o lessor or his successor-in-interest shall be entitled to e5ect the lessee u"on the ground that the leased "re!ises have been sold or !ortgaged to a third "erson regardless of whether the lease or !ortgage is registered or not. SEC. 9. Rent&to&'(n Scheme. - At the o"tion of the lessor, he or she !ay engage the lessee in a written rent-to-own agree!ent that will result in the transfer of ownershi" of the "articular dwelling in favor of the latter. uch an agree!ent shall be e)e!"t fro! the coverage of ection 7 of this Act. SEC. 1-. Application of the )i*il )ode and Rules of )ourt of the Philippines. - 4)ce"t when the lease is for a definite "eriod, the "rovision of "aragra"h #$' of Article $9:7 of the ;ivil ;ode of the <hili""ines, insofar as they refer to residential units covered by this Act, shall be sus"ended during the effectivity of this Act, but other "rovisions of the ;ivil ;ode and the *ules of ;ourt on lease contracts, insofar as they are not in conflict with the "rovisions of this Act shall a""ly. SEC. 11. )o*erage of this Act. - All residential units in the 1ational ;a"ital *egion and other highly urbani=ed cities the total !onthly rent for each of which does not e)ceed Ten thousand "esos #<$%,%%%.%%' and all residential units in all other areas the total !onthly rent for each of which does not e)ceed 8ive thousand "esos #<0,%%%.%%' as of the effectivity date of this Act shall be covered, without "re5udice to e)isting contracts. SEC. 1,. Penalties. - A fine of not less than 8ive thousand "esos #<0,%%%.%%' nor !ore than 8ifteen thousand "esos #<$0,%%%.%%' or i!"rison!ent of not less than one #$' !onth and one #$' day to not !ore than si) #9' !onths or both shall be i!"osed on any "erson, natural or 5uridical, found guilty of violating any "rovision of this Act. SEC. 13. Information Dri*e. - The >e"art!ent of the -nterior and .ocal ?overn!ent and the @ousing and Arban >evelo"!ent ;oordinating ;ouncil, in coordination with other concerned agencies, are hereby !andated to conduct a continuing infor!ation drive about the "rovisions of this Act. SEC. 14. Transitory Pro*ision. - The @ousing and Arban >evelo"!ent ;oordinating ;ouncil and its attached housing agencies are hereby !andated to for!ulate within si) #9' !onths fro! effectivity hereof, a transition "rogra! which will "rovide for safety !easures to cushion the i!"act of a free rent !arket.

SEC. 1.. Separa ility )lause. - -f any "rovision or "art hereof is held invalid or unconstitutional, the re!ainder of the law or the "rovision not otherwise affected shall re!ain valid and subsisting. SEC. 1/. Repealing )lause. - Any law, "residential decree or issuance, e)ecutive order, letter of instruction, ad!inistrative order, rule or regulation contrary to or inconsistent with the "rovisions of this Act is hereby re"ealed, !odified or a!ended accordingly. SEC. 10. #ffecti*ity )lause. - This Act shall take effect beginning fifteen #$0' days after its co!"lete "ublication in at least two #2' news"a"ers of general circulation until 7$ >ece!ber 2%%B.

A""roved, %RAN2!"N )R"!&N <resident of the enate 3&SE )E +ENEC"A 3R. "eaker of the @ouse of *e"resentatives

This Act which is a consolidation of enate Bill 1o. $C09 and @ouse Bill 1o. 7709 was finally "assed by the enate and the @ouse of *e"resentatives on /ctober 20, 2%%0 and 1ove!ber :, 2%%0, res"ectively. &SCAR $. 4A ES ecretary of enate R& ERT& P. NA5AREN& ecretary ?eneral @ouse of *e"resenatives

A""roved: >ece!ber 2$, 2%%0 $!&R"A 'ACAPA$A!6ARR&4& President of the Philippines