MANILA — The National Human Settlements Board says it is imposing a 4% cap — effectively P400 — on the increase in the rental price for residences that are being rented out for P10,000 and below this year.

The policy will benefit at least 2.72 million Filipinos, Department of Human Settlements and Urban Development Undersecretary Henry Yap said.

“Only existing tenants na nagbabayad na ng P10,000 and below, ang covered nitong rent control. So kung merong renta diyan na above niyan ay hindi na sakop,” Yap said in a televised briefing.

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He said the new rent control policy is a departure from previous years, where there were three tiers of limits on rent control, depending on rental price.

“This year, base sa diskusyon at resolution na inilabas ng National Human Settlements Board, pinagsama-sama na lang 'yan at iisa na lang ang rate na ginagamit natin, which is 4%,” he said.

Yap says tenants can report violations to the DHSUD or to their barangays.

“Ang purpose nito is the barangays can immediately thresh the problem out between the tenants at mga landlords. Ang objective nitong Lupon ng barangay is to make them aware of this law and for them to comply.”

Lupong Tagapayapa are barangay-level bodies mandated by Presidential Decree No. 1508 to function as avenues for dispute resolution outside the court system.

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Those who will be found guilty of violating the law will face fines amounting to P25,000 to P250,000 as well as imprisonment of a maximum of six months, Yap said.