2002 COMPREHENSIVE RULES ON LAND USE CONVERSION

DAR Administrative Order No. 1, Series of 2002

2002 Comprehensive Rules on Land Use Conversion, February 28, 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:

Agricultural lands to be converted to non-agricultural uses

Agricultural lands to be devoted to other types of agricultural

activities such as livestock, poultry & fishpond

Agricultural lands to be converted to non-agricultural uses other than

that previously authorized

Agricultural lands reclassified to non-agricultural uses by the LGU

after June 15, 1988
What are the Areas Non-negotiable for Conversion?

Agricultural lands under NIPAS

Mossy and virgin forests

Riverbanks

Swamp forests or marshlands

All irrigated lands

All irrigable lands covered by firm funding project commitments

All agricultural lands with irrigation facilities

Priority Development Areas and Projects

Specific sites in RAIC/RIC identified by DTI and DA
Tourism development areas
Areas intended for eco-zone projects, endorsed by PEZA
Government-owned lands to be converted for projects of national interest
Criteria for Conversion
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
Within same
island or that of
the Office of the
DAR Regional
Director
Not within same
island or that of

Filing Fee
P1,000.00

Inspection Fee
P10,000.00

P15,000.00

the Office of the

DAR Regional
Director
Above 5 hectares
Major island of Luzon
(except Bicol peninsula)

P2,000.00

P10,000.00

Region I - IV
(outside the main island of
Luzon)

P15,000.00

Visayas Group of Island

(including Bicol peninsula)

P15,000.00

Mindanao Group of Island

P20,000.00

Approving Authority
Areas above 5 hectares
Secretary

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.
Grounds for Revocation of Conversion Order

Lack of jurisdiction by approving authority

Misrepresentation of facts

Non-compliance with the conditions

Non-compliance with the agreement on payment of disturbance

compensation

Conversion to other use other than authorized

Any other serious violation of agrarian laws

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 began; 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)

Special Certifications: if applicant is an FB

From
DAR PARO

Nature of CARP
coverage

Status of payment

Date of award of land

From
Full
obligation

payment

LBP
of

Public Notice

4 Feet by 8 feet billboard made of strong weather-resistant material.

One billboard for every 20 hectares


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 noncompliance with conditions in the Order
LAND USE CONVERSION PROCEDURES
File application
Conduct of filed
Investigation (10 days)

Maximum Processing Period:

Regular
- 130 days
Priority areas - 110 days
Housing
- 70 days

Committee deliberation/
Recommendation (30 days)
EFFECT OF PROTEST
Interrupt running for processing

Issue Order of
Conversion (30 days)