Baguio City—Maharlika tenants and the city have met halfway.
After a public hearing on Wednesday, September 24, tenants of the Maharlika Livelihood Center (MLC), along with Councilors Paolo Salvosa and Leandro Yangot, agreed on the provisions of the “Interim Policy Guidelines of the Maharlika Livelihood Center Pending the Formulation of Its Master Development Plan and Establishment as a Local Economic Enterprise.” This agreement paves the way for the ordinance’s final third reading.
Salvosa, a proponent of the proposed law, said, “Marinig ang boses ng tenants, pero ma-balance din sa boses ng ibang stakeholders tulad ng customers and aspiring tenants na gusto rin makapasok sa Maharlika,” emphasizing the importance of listening to the tenants while also balancing interests with those of other stakeholders like customers and aspiring new tenants.
During the second public consultation at the University of the Cordilleras Theatre, suggestions from a consolidated position paper, which had previously tagged the proposed law as “unjust, impractical, and legally questionable,” were discussed and adjusted, which earned the general approval of the group.
The MLC was turned over to the City Government of Baguio on May 31, 2025, following the expiration of its fifty-year lease agreement with the Human Settlements Development Corporation (HSDC).
The Salvosa ordinance stipulates that while the City Government formulates the MLC’s Master Development Plan and rationalizes its rental rates, there is a need to establish interim operational guidelines to ensure order, fairness, and regulatory compliance.
The issue of penalties for late rental was discussed. While the current policy has a 25% penalty and a succeeding 2% interest per month, the tenants proposed to lower the penalties to a range of 5% to 15%.
Another issue raised was that of legitimate and actual occupants. Tenants proposed that lawful occupants be defined as owner-operators who are document-based and subject to due process for alleged violations, with no subleasing allowed.
A top concern about how many family members can occupy stalls was also raised. A consensus was reached that up to five stalls could be occupied by relatives up to the third degree of consanguinity.
The tenants’ primary concern revolves around the lack of a clear definition for “legitimate occupants.” The position paper argues that without a consistent and document-based standard, the rule could be arbitrarily applied, potentially excluding long-time, rent-paying stallholders who may not be physically present at their stalls at all times. They also object to a rigid “one household, one stall” rule, which they say would retroactively force multi-stall operators, many of whom have invested decades in their businesses, to downsize.
“The MLC is more than a physical structure; it is a living livelihood ecosystem and a heritage marketplace that has anchored Baguio’s economy and culture for decades,” the tenants’ paper stated urging the City Council to revisit and amend the guidelines to be more consistent with constitutional protections and the Civil Code, ensuring that the transition to a modern MLC is both just and inclusive.
Sections of the proposed law discussed in the position paper delved into the following key points:
- Who counts as an “Actual Occupant”? Clarifying recognition standards.
- Excessive Penalties: When surcharges punish instead of protect.
- Where Do the Rents Go? Demanding transparency in the MLC Special Fund.
- The “One Household, One Stall” Rule: Fair access or forced displacement?
- Presence ≠ Subleasing: Ending the faulty presumption.
- Tenant Improvements—Confiscation or Compensation?
- Luck Over Merit: The pitfalls of income-class raffles in tenant selection.
- Succession at Risk: Rethinking the ban on assignment and transfer.
- Waivers Without Safety: Why liability can’t be signed away.
- Prejudicial to Public Interest: The dangers of overbroad termination clauses.
- Advisory Only? The case for real tenant voice in governance.
Salvosa said all suggestions will be put into the draft, which will be published by the weekend on the city government’s social media platforms for the tenants as well as the public to review and comment on until the next week’s city council session.
The proposed law has been marked as urgent by City Mayor Benjamin Magalong and Vice Mayor Faustino Olowan. It will be scheduled for approval for a second reading with all suggestions and input incorporated, and the third reading is anticipated by mid-October. By Maria Elena Catajan
