Addressing the Housing Backlog

through Effective Land Use

Classification, Reclassification and
Conversion
Usec. Luis Meinrado C. Pañgulayan
LAND IS INDISPENSABLE
TO HUMAN EXISTENCE
 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.
 GENERAL STATUTORY LIMITATION

Felisa Ferrer vs. Carganillo, et al.

(GR No. 170956 12 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.
 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.
 AGRICULTURAL LAND

• Land devoted to agricultural activity

• Land not classified as mineral, forest,

residential, commercial or industrial land.
 AGRICULTURAL ACTIVITY

1. Cultivation of the soil

2. Planting of crops
3. Growing of fruit trees
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
 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
 INSTANCES WHEN AGRICULTURAL LANDS
ARE NOT COVERED BY AGRARIAN REFORM

• EXCLUDED FROM THE PROGRAM

• EXEMPTED FROM THE PROGRAM

• CONVERTED TO NON-AGRICULTURAL USE

 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. 86889 : December 4, 1990
 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.
 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)
 EXAMPLES OF A.D.E. LAND USES

• Parks • Church sites / places of

• Wildlife worship
• Forest reserves • Communal burial grounds
/ cemeteries
• Reforestation • Penal colonies / Penal
• Fish Sanctuaries and Breeding Grounds farms
• Watersheds • Government and private
• Mangroves research and quarantine
• National defense centers
• Lands with 18% slope
• School sites and campuses and over (undeveloped)
 CONCEPT OF CONVERSION

The act or process of changing the current

physical use of a piece of agricultural land to non-
agricultural purpose/s, such as residential,
commercial, and/or industrial.
 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
EXAMPLES OF PROJECTS WITH A COMMERCIAL
PURPOSE
• TOURIST RESORT PROJECTS

• COMMERCIAL MALLS

• RETAIL, WHOLSESALE COMMERCIAL ESTABLISHMENTS

• GASOLINE STATONS

• COMMERCIAL CEMETERIES & COLUMBARIES

EXAMPLES OF PROJECTS WITH AN INDUSTRIAL
PURPOSE

• PRIVATE SOLAR AND OTHER ENERGY PROJECTS

• STEEL MANUFACTURING PLANTS

• TRANSMISSION AND TELECOM PROJECTS

• INDUSTRIAL ECONOMIC ZONES

 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. 183409 June 18, 2010
 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 non-

agricultural purposes.

• Land is neither irrigated nor irrigable.

(Section 65, RA 6657, as amended)
 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
 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.
 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.
 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
 EFFECTS OF REVOCATION

• Automatic Coverage under CARP

• Automatic Reversion to Agricultural

Land Classification

• Forfeiture of Bonds
 ILLEGAL CONVERSION

• Actual use of the land for non-agricultural purpose

without DAR Approval.

• Intentto avoid application of CARP in the

landholding.

• Intent to dispossess any farmer tilling the land.

(Section 73-c of RA 6657, As Amended)
 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 non-
agricultural purposes without DAR conversion
order.
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
 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
 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

 TOTAL AREA OF CONVERTED
AGRICULTURAL LANDS (1988-2016)

222, 548.0178
Hectares
TOTAL AREA OF AGRICULTURAL LANDS
EXEMPTED/EXCLUDED (1988 – 2016)

58, 197.1083
Hectares
PRESIDENTIAL DIRECTIVE ON THE
IMPOSITION OF MORATORIUM ON
CONVERSION APPLICATIONS
THE 35th PRESIDENTIAL AGRARIAN
REFORM COUNCIL
DAR DTI 6 PSR LO
DA DOF 6 PSR FB
DENR DOLE
DBM NEDA
LBP
DILG
NIA
DPWH LRA
 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
 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.
 LEGAL BASIS OF THE MORATORIUM

QUASI-LEGISLATIVE POWERS OF
PARC & DAR
(Sec. 49, RA 6657, As Amended)
 LEGAL BASIS OF THE MORATORIUM
CREBA vs. DAR (G.R. No. 183409 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.
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.
“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. 47800.
December 2 1940
MARAMING SALAMAT!