Addressing the Housing Backlog through Effective Land Use Classification, Reclassification and Conversion. Usec. Luis Meinrado C.

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1 Addressing the Housing Backlog through Effective Land Use Classification, Reclassification and Conversion Usec. Luis Meinrado C. Pañgulayan

2 LAND IS INDISPENSABLE TO HUMAN EXISTENCE

3 CONSTITUTIONAL LIMITATION The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all people to human dignity, reduce social, economic and political inequalities and to remove cultural inequities by equitably diffusing wealth and political power for the common good. To this end, the State shall regulate the acquisition, ownership, use and disposition of property and its increments.

4 GENERAL STATUTORY LIMITATION Felisa Ferrer vs. Carganillo, et al. (GR No May 2010) The use, enjoyment, occupation or disposition of private property is not absolute. It is predicated on the social functions of property. It is restricted in a sense so as to bring maximum benefits to all and not to a few chosen individuals.

5 SPECIFIC STATUTORY LIMITATIONS REPUBLIC ACT 6657, as amended, otherwise known as the Comprehensive Agrarian Reform Law, regulates the ownership, disposition and use of agricultural lands.

6 AGRICULTURAL LAND Land devoted to agricultural activity Land not classified as mineral, forest, residential, commercial or industrial land.

7 1. Cultivation of the soil 2. Planting of crops 3. Growing of fruit trees AGRICULTURAL ACTIVITY 4. Raising of livestock, poultry or fish 5. Harvesting of farm products 6. Other farm activities and practices performed by a farmer in conjunction with such farming operations done by person whether natural or juridical

8 AGRICULTURAL LANDS ARE SUBJECT TO AGRARIAN REFORM Landowner can only own a maximum area of five (5) hectares Landholdings beyond the ownership ceiling is subject to acquisition by the State Acquisition is subject to just compensation Lands acquired by the State are distributed to qualified farmer-beneficiaries (FBs) Qualified FBs pay amortization for 30 years subject to 6% interest (per annum) Qualified FBs are prohibited to transfer ownership of the awarded lands within ten years from registration of CLOA or EP FBs must cultivate and make the land productive

9 INSTANCES WHEN AGRICULTURAL LANDS ARE NOT COVERED BY AGRARIAN REFORM EXCLUDED FROM THE PROGRAM EXEMPTED FROM THE PROGRAM CONVERTED TO NON-AGRICULTURAL USE

10 CONCEPT OF EXCLUSION The act or process of excluding lands from coverage of agrarian reform program solely because said lands are devoted to livestock and poultry. In Luz Farms v. Secretary of DAR, the Court ruled that lands devoted to livestock and poultry-raising are not included in the definition of agricultural land. G.R. No : December 4, 1990

11 THE CONCEPT OF EXEMPTION The act or process of exempting the lands from agrarian reform program due to the fact that said lands are actually, directly and exclusively used and found to be necessary for education, religion, military, penal and other purposes.

12 CONCEPT OF EXEMPTION Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt from the coverage of CARP (RA 7881). Reclassification of Agricultural lands to residential, commercial and industrial use before 15 June 1988 (DOJ Opinion No. 44 s. 1990)

13 EXAMPLES OF A.D.E. LAND USES Parks Wildlife Forest reserves Reforestation Fish Sanctuaries and Breeding Grounds Watersheds Mangroves National defense School sites and campuses Church sites / places of worship Communal burial grounds / cemeteries Penal colonies / Penal farms Government and private research and quarantine centers Lands with 18% slope and over (undeveloped)

14 CONCEPT OF CONVERSION The act or process of changing the current physical use of a piece of agricultural land to nonagricultural purpose/s, such as residential, commercial, and/or industrial.

15 EXAMPLES OF PROJECTS WITH A RESIDENTIAL PURPOSE 1. SOCIALIZED HOUSING PROJECTS 2. RESETTLEMENT AREAS FOR VICTIMS OF CALAMITIES 3. AFP / PNP HOUSING PROJECTS 4. PRIVATE SUBDIVISIONS

16 EXAMPLES OF PROJECTS WITH A COMMERCIAL PURPOSE TOURIST RESORT PROJECTS COMMERCIAL MALLS RETAIL, WHOLSESALE COMMERCIAL ESTABLISHMENTS GASOLINE STATONS COMMERCIAL CEMETERIES & COLUMBARIES

17 EXAMPLES OF PROJECTS WITH AN INDUSTRIAL PURPOSE PRIVATE SOLAR AND OTHER ENERGY PROJECTS STEEL MANUFACTURING PLANTS TRANSMISSION AND TELECOM PROJECTS INDUSTRIAL ECONOMIC ZONES

18 DIFFERENCE BETWEEN CONVERSION AND RECLASSIFICATION Conversion is the act of changing the current use of a piece of agricultural land into some other use as approved by DAR. Reclassification is the act of specifying how agricultural lands shall be utilized for non-agricultural uses as determined by an LGU Mere reclassification of an agricultural land does not automatically allow a landowner to change its use. One has to undergo the process of conversion before being permitted to use the agricultural land for other purposes. (CREBA vs DAR) G.R. No June 18, 2010

19 REQUISITES FOR CONVERSION Land has ceased to be economically feasible and sound for agricultural purposes. Locality has become urbanized Land will have a greater economic value for nonagricultural purposes. Land is neither irrigated nor irrigable. (Section 65, RA 6657, as amended)

20 PROCEDURAL REQUIREMENTS FILE APPLICATION PAY FILING FEES, INSPECTION COSTS and POST BONDS SUBMIT THE FOLLOWING: PROOF OF FINANCIAL CAPACITY CERTIFICATIONS FROM GOVERNMENT AGENCIES DEVELOPMENT PLAN

21 IMPORTANCE OF DEVELOPMENT PLAN Failure to implement the conversion plan within five (5) years from the approval of such conversion plan will result to revocation of the conversion order, bond forfeiture and immediate coverage under CARP of the landholding.

22 REVOCATION OF A CONVERSION ORDER Violation of any of the conditions of the conversion grant due to the fault of the applicant. Alteration of the Development Plan without DAR approval Failure to implement the Development Plan within five years.

23 CONDITIONS FOR THE GRANT OF CONVERSION Posting of Performance Bond Payment of Disturbance Compensation to affected Farmers Full adherence to the Development Plan Annotation of the conversion grant on the title

24 EFFECTS OF REVOCATION Automatic Coverage under CARP Automatic Reversion to Agricultural Land Classification Forfeiture of Bonds

25 ILLEGAL CONVERSION Actual use of the land for non-agricultural purpose without DAR Approval. Intent to avoid application of CARP in the landholding. Intent to dispossess any farmer tilling the land. (Section 73-c of RA 6657, As Amended)

26 PREMATURE CONVERSION Undertaking of any development activity without DAR conversion order. Development activity will alter physical characteristics of the land. Alteration renders land suitable for nonagricultural purposes without DAR conversion order.

27 ADMINISTRATIVE SANCTIONS FOR ILLEGAL AND PREMATURE CONVERSION Revocation or withdrawal of the conversion order Blacklisting of the applicant, developer or representative Automatic disapproval of conversion applications Issuance of cease and desist order by the Secretary or Regional Director, as the case may be, upon verified reports that premature, illegal or unauthorized conversion activities are being undertaken Forfeiture of cash bond or performance bond

28 CRIMINAL SANCTIONS FOR ILLEGAL CONVERSION Imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of not less than Two hundred thousand pesos (P200,000.00) and not more than One million pesos (P1,000,000.00), or both, at the discretion of the court upon any person who violates Section 73, subparagraphs (c), (d), (e), and (i) of Republic Act No. 6657, as amended. Section 74 of RA 6657, As Amended

29 CRIMINAL SANCTIONS FOR PREMATURE CONVERSION Imprisonment of two (2) to six (6) years A fine equivalent to one hundred percent (100%) of the government's investment cost RA 8435 AFMA Law

30 TOTAL AREA OF CONVERTED AGRICULTURAL LANDS ( ) 222, Hectares

31 TOTAL AREA OF AGRICULTURAL LANDS EXEMPTED/EXCLUDED ( ) 58, Hectares

32 PRESIDENTIAL DIRECTIVE ON THE IMPOSITION OF MORATORIUM ON CONVERSION APPLICATIONS

33 THE 35 th PRESIDENTIAL AGRARIAN REFORM COUNCIL DAR DA DENR DBM DILG DPWH DTI DOF DOLE NEDA LBP NIA LRA 6 PSR LO 6 PSR FB

34

35 CURRENT PRIORITIES FOR ACTION REGARDING CONVERSION OF AGRICULTURAL LANDS Formulation of National Land use Policy Passage of Genuine Agrarian Reform Law Review of current status of CARP implementation in the entire country Review all existing conversion order

36 RATIONALE OF MORATORIUM Prevent conversion of Prime Agricultural lands. Ensure food productivity. Give DAR opportune time to conduct nationwide assessment of all converted agricultural lands. Safeguard the milestone achievements of the CARP in the country. Discourage ARBs from selling their lands.

37 LEGAL BASIS OF THE MORATORIUM QUASI-LEGISLATIVE POWERS OF PARC & DAR (Sec. 49, RA 6657, As Amended)

38 LEGAL BASIS OF THE MORATORIUM CREBA vs. DAR (G.R. No June 18, 2010) The issuance and enforcement of the Secretary of Agrarian Reform of DAR AO 1 s. 2002, as amended and Memorandum No. 88 were done in the exercise of his quasi-legislative and administrative functions and not of judicial or quasi-judicial functions. XXX The issuance of said Memorandum 88 was made pursuant to the general welfare of the public, thus, it cannot be argued that it was made without any basis.

39 SCOPE OF THE PROPOSED MORATORIUM The moratorium applies only to Applications for Conversion filed upon effectivity of the Executive Order. The Moratorium does not apply to applications for conversion which have already been filed before the effectivity of the Executive Order provided that the filing fees, inspection costs, and bonds are paid.

40 Social Justice is neither communism, nor despotism, nor atomism, nor anarchy, but the humanization of laws and the equalization of social and economic forces by the State so that justice in its rationale and objectively secular conception may at least be approximated. Justice Jose Laurel Calalang vs. Williams GR No December

41 MARAMING SALAMAT!

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