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RULES ON LAND USE CONVERSION

DAR Administrative Order No. 1, Series of 2002


Basis:
RA 6657 Comprehensive Agrarian Reform Law
RA 8435 Agriculture and Fisheries Modernization Act
EO 45 Prescribing Time Periods for Issuance of Housing-Related Certifications, Clearances and
Permits, and Imposing Sanctions for Failure to Observe the Same, October 24, 2001
Areas Covered:
1. Agricultural lands to be converted to non-agricultural uses
2. Agricultural lands to be devoted to other types of agricultural activities such as livestock,
poultry & fishpond
3. Agricultural lands to be converted to non-agricultural uses other than that previously
authorized
4.

Agricultural lands reclassified to non-agricultural uses by the LGU after June 15, 1988

What are the Areas Non-negotiable for Conversion?


1.

Agricultural lands under NIPAS

2.

Mossy and virgin forests

3.

Riverbanks

4.

Swamp forests or marshlands

5.

All irrigated lands

6.

All irrigable lands covered by firm funding project commitments

7.

All agricultural lands with irrigation facilities

Priority Development Areas and Projects


1. Specific sites in RAIC/RIC identified by DTI and DA
2. Tourism development areas
3. Areas intended for eco-zone projects, endorsed by PEZA
4. Government-owned lands to be converted for projects of national interest
Criteria for Conversion. The following criteria shall guide the resolution of application for
conversion:
1.
Conversion may be allowed if the land subject of application is not among those considered
non-negotiable for conversion
2.

Conversion may be allowed, in accordance with Section 65 of RA 6657, when the land has

ceased to be economically feasible and sound for agricultural purposes or the locality has become
urbanized and the land will have a greater economic value for residential, commercial, industrial, or
other non-agricultural purposes.

3.

Conversion of lands within SAFDZ,

If CARP Land:

Applicant should be the ARB

5-year prohibitory period has lapsed

Full payment of obligation

Where to Secure Application Forms

CLUPPI (Center for Land Use Policy, Planning and Implementation)

RCLUPPI

PARO

Where to File Application for Land Use Conversion


CLUPPI

RCLUPPI

Above 5 hectares

5 hectares and below

Filing Fee/Inspection Cost

5 hectares & below

Filling Fee

Inspection Fee

Within same Island or that

1,000.00

10,000.00

of the Office of the DAR


Regional Director
Not within same island or

15,000.00

that of the Office of the


DAR Regional Director

Above 5 hectares
Major island of Luzon (except Bicol

P2,000.00

P10,000.00

peninsula)

Region I IV
(outside the main island of
Luzon)

P15,000.00

Visayas Group of Island (including

P15,000.00

Bicol peninsula)
Mindanao Group of Island

P20,000.00

Approving Authority
Secretary

Areas above 5 hectares

Total land applied.


Land is adjacent to area
previously granted conversion.
Single project with different
owners within same barangay or
within 2 or more adjacent
barangays.

Regional Director

Areas involving 5 hectares and


below.

Standard Documentary Requirements

Proof of payment of necessary fees & posting of bonds

Notarized Application

Copy of OCT or TCT

If untitled, DENR Certification on A & D status of land

DENR/Court Certification that titling has begun; and absence of adverse claimants

True Copy of TCTs/OCTs of all subject land as of 15 June 1998, and all successor
titles until present

True Copy of current Tax Declaration

Project Feasibility Study

JVA or Business arrangement on the use of land between the landowner (or
EP/CLOA holders) and developer

Narrative description of development plan with detailed activities, program

components, phasing, work schedule and financial plan duly certified by a licensed
engineer, architect or land use planner

Proof of financial & organizational capability of the developer to develop land

Socio-economic benefit-cost study of the proposed project

Recent 5R photos of the property

SPA or Board Resolution

Concurrence letter of the mortgagee; if land is encumbered

Certification from the MARO


1)

Status of CARP coverage on & around the subject land

2)

Condition of the posting of billboards

3)

Presence of farmers, agricultural lessee, etc.

4)

Posting of notices of application in conspicuous places

Affidavit/Undertaking of the applicant stating:


1)

list of tenants, farmworkers, bonafide occupants to be affected by conversion

2)

payment of or shall pay disturbance compensation

3)

required billboard has been erected

4)

not to undertake premature development

5)

authorizing DAR to forfeit bond in case of premature development

6)

has not commenced any action or filed any claim involving the same land in any
court

Certifications from:

Housing and Land Use Regulatory Board (HLURB)

Department of Agriculture (DA)

Department of Environment and Natural Resources (DENR)

Public Notice
1.
4 Feet by 8 feet billboard made of strong weather-resistant material.
2.

One billboard for every 20 hectares

3.
4.

Located on visible points within the landholding applied, preferably along the road
Written in local dialect

Information includes:
-

Statement that the applicant is proposing to convert the subject landholding from
agricultural to non-agricultural use

Name of the landowner representative and developer

Area and location

Filing date

Date of posting of billboard

Schedule of ocular inspection

Deadline for filing protest

Address of the CLUPPI and RCUPPI and PARO where oppositors may formally
file their protest

Address of the approving authority

Date of approval or denial of the application

Bond to Guarantee Against Premature Conversion


-

Cash or Manager's/Cashier's Check (2.5% of zonal value)

Surety Bond issued by the GSIS (15% of zonal value)

Posted upon filing of application

Guarantee against premature conversion

Refundable or convertible into performance bond

Forfeited in favor of ARF in case

Applicant carry out

Premature development

Exemption from Bond to Guarantee against Premature Conversion

Socialized housing projects (HLURB)

Resettlement projects for families displaced by development of government projects


(NHA)

Community Mortgage Program projects (NHMFC)

Performance Bond

Cash or manager's/cashier's check (2.5% of total zonal value)

GSIS surety bond (15% of total zonal value)

Posted within 5 days form receipt of copy of conversion order

Ensure faithful compliance with the conditions of conversion Order

Refundable upon completion of the project


Forfeited upon default in development of land and/or non-compliance with conditions
in the Order