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 above 5 hectares RCLUPPI 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) Region I - IV (outside the main island of Luzon) Visayas Group of Island (including Bicol peninsula) Mindanao Group of Island P2,000.00 P10,000.00 P15,000.00

P15,000.00 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) 2) Status of CARP coverage on & around the subject land Condition of the posting of billboards

3) 4) 1) 2) 3) 4) 5) 6)

Presence of farmers, agricultural lessee, etc. Posting of notices of application in conspicuous places

Affidavit/Undertaking of the applicant stating: list of tenants, farmworkers, bonafide occupants to be affected by conversion payment of or shall pay disturbance compensation required billboard has been erected not to undertake premature development authorizing DAR to forfeit bond in case of premature development 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 Full obligation From 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) Committee deliberation/ Recommendation (30 days) EFFECT OF PROTEST Interrupt running for processing Maximum Processing Period: Regular - 130 days Priority areas - 110 days Housing - 70 days Issue Order of Conversion (30 days)