Council okays rental holiday ordinance

May 24, 2020 Metro BLISTT

Renters in non-operating commercial establishments/spaces in the city during the Enhanced Community Quarantine (GCQ), the General Community Quarantine (GCQ), and in other similar situations, shall be granted a rental holiday under a recently approved ordinance.

The city council during the regular session on May 18 approved an ordinance mandating a rental holiday on real properties, buildings, stalls, units, or spaces used for commercial business or industrial purposes within the city which were prevented from operation during the ECQ, GCQ, and under other similar measures put in place to address the Coronavirus pandemic.

The ordinance was signed by Mayor Benjamin Magalong on May 22, 2020 and will take effect only after its publication in at least one newspaper of general circulation in the city.

Under the ordinance, lease rentals shall not be collected by owners, lessors, sublessors, operators, administrators, or managers while business operations are restricted.

The approved measure authored by all council members shall be more popularly known as “Rental Holiday Ordinance, to Heal as One.”

The ordinance states the implementation of the ECQ has
“drastically” affected the lessors and the lessees rendering both “incapable of performing their respective obligations and the purposes of the lease.”

“The city government needs to take an aggressive action through social and remedial legislation to provide relief for those sectors directly and indirectly affected and attain the objective of the government ‘TO HEAL AS ONE’ with the cooperation of all sectors,” the ordinance reads.

The ordinance applies to all corporations owned and controlled by the city government and national government as well as private owned real properties and commercial or operational establishments covered by lease contracts or under a lessor-lessee relationship where the parties’ obligations under Article 1654 and 1657 of the New Civil Code of the Philippines could not be fulfilled due to the suspension of operations of such establishments as mandated by local and national guidelines and issuance’s in light of the dangers posed by the Coronavirus disease.

Paragaph 5 of the memorandum from Executive Secretary Salvador Medialdea dated March 16, 2020 specifies that “only those private establishments providing basic necessities and such activities
related to food and medicine production, i.e., public markets, supermarkets, groceries, convenience stores, food preparation and delivery services, water-refilling stations, manufacturing and processing plants of basic food products and medicines, banks, money transfer services, power, energy, water and telecommunications supplies and facities shall be open.”

Pursuant to the said memorandum, business operations of establishments not covered by Paragraph 5 have been suspended within the duration of the ECQ.

These business establishments continued to be non-operational until May 15, 2020 as the ECQ in the city has been subsequently extended until the said date.

The ordinance also applies to all establishments allowed to operate during the ECQ but opted to close. Under the GCQ guidelines issued by the city mayor’s office, certain establishments and industries are allowed to re-operate at full capacity.

The rest shall remain closed or non-operational, thus are also covered by this ordinance.

The ordinance stipulates that stalls within the city market permitted to operate during the ECQ and allowed to resume operations during the GCQ shall settle their unpaid rentals for March, April, and May while those that did not operate shall not be obliged to pay rentals.

Business owners with lease contracts with the city shall pay their accumulated rentals for March, April, and may in 3 equal installments starting June 30 to be added to the rental due for the month.

On the other hand, concessionaires at Burnham Park and Botanical Garden, including toilet concessionaires, shall be exempted from paying rent for the period covered by the ECQ and until restriction on their business operations is lifted.

In line with the city government’s objective “to heal as one,” the ordinance enjoins owners/administrators of business establishments allowed to operate during the ECQ and GCQ or under other similar situations, either at full or partial capacity, to provide relief to renters either by waiving, reducing, or reprieving/postponing the lease rentals.

The business permit showing the line of business shall be sufficient to determine coverage under the ordinance. Owners, lessors, operators, administrators, or managers of establishments
covered by the ordinance are tasked to submit a written report of compliance addressed to the city mayor through the Permits and Licensing Division.

The ordinance orders closure of business and revocation of permit to non-compliant establishments. Business application shall be denied until full compliance. In addition, persons responsible or in charge in case of a corporation shall be meted a fine of P5,000.00 and one-year imprisonment upon conviction.

Jordan G. Habbiling/ABN