To avoid unwarranted increase in rental rates among lower income families, the National Human Settlements Board (NHSB) has approved a four percent increase cap for monthly residential rental rates of P10,000 and below, effective Jan. 1 to Dec. 31 this year.
NHSB Resolution No. 2023-03, published Dec. 16, provides for the continuous implementation of rental regulation under the terms and conditions set forth in 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 current administration.
Department of Human Settlements and Urban Development (DHSUD) Undersecretary Henry Yap, representing 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,” Yap said in a DHSUD press release.
Republic Act 9653, or the Rent Control Act of 2009, declares the continuing program of encouraging the development of affordable housing to protect tenants in the lower-income brackets and other beneficiaries from unreasonable rent increases. The law authorized the then Housing and Urban Development Coordinating Council to regulate rental rates of certain residential units, among other related functions.
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 Rent Control Act.
Acuzar, meanwhile, cited the P13 billion revolving credit lines recently approved by the Home Development Mutual Fund (Pag-IBIG Fund) in support to the Pambansang Pabahay Pilipino Program (4PH).
The Pag-IBIG Fund Board, chaired by Acuzar, also recently approved a P12 billion and P929 million revolving credit lines for the National Housing Authority and the Social Housing Finance Corporation (SHFC), respectively.
The credit lines would allow the development and construction of more than 11,000 housing units by the NHA and SHFC in attainment of the 4PH program.
“The approved credit lines will not only sustain the positive momentum we have gained in the nationwide implementation of Pambansang Pabahay, but equally important, it will further bolster private sector confidence,” Acuzar stressed.
So far, 17 projects under the flagship “Pambansang Pabahay” are currently in various stages of development and construction throughout the country.
Acuzar said that about 300 units at the Asenso Yuhum Residences in Bacolod City are set for turnover. More units are expected for delivery in the coming months.
“I am confident that 2024 will be a milestone year for our President’s Pambansang Pabahay. Slowly but surely, we are now reaping the fruits of our labor,” he stressed.
The DHSUD said it also continuously performs its core mandates, which include policy formulations, environmental land use and urban planning and development, housing and real estate development regulations, homeowners and community developments, and technical advisory roles.
From January to November 2023, it issued license to sell (LS) to 642 projects, comprising 489 new and 153 amended licenses. This equates to a total of 123,985 residential and 256,834 non-residential units. The issuance of LS protects homebuyers from unscrupulous developers and transactions since it requires the conformance of these projects with the prescribed standards.
In addition, 15,839 real estate dealers, brokers and/or salespersons were registered to ensure buyers’ protection with accredited sellers.
The DHSUD also reported a cumulative data of 754 local government units with approved Comprehensive Land Use Plans (CLUP) for sustainable and resilient human settlements. It also reviewed 108 CLUPs, and Provincial Physical Framework Plans and Zoning ordinances for compliance with land use and urban planning guidelines. ||
