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 — 5 hectares and
hectares below
Filing Fee/Inspection Cost
5 hectares & below
Within same Filing Fee Inspection Fee
island or that of P1,000.00 P10,000.00
the Office of the
DAR Regional
Director
Not within same P15,000.00
island or that of
 the Office of the
DAR Regional
Director
Above 5 hectares
Major island of Luzon P2,000.00 P10,000.00
(except Bicol peninsula)
Region I - IV P15,000.00
(outside the main island of
Luzon)
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 From LBP
DAR PARO
• Nature of CARP •Full payment of
coverage obligation
• Status of payment
• Date of award of land
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 non-

compliance with conditions in the Order

LAND USE CONVERSION PROCEDURES

File application Maximum Processing Period:
Regular - 130 days
Priority areas - 110 days
Conduct of filed Housing - 70 days
Investigation (10 days)
Committee deliberation/ Issue Order of
Recommendation (30 days) Conversion (30 days)
EFFECT OF PROTEST
Interrupt running for processing