Supervisión del trámite de la liquidación

WHAT IS LAND USE CONVERSION?

Conversion the act of changing the current use of a piece of land into some other use. Specifically for the DAR, land use conversion refers to the change from agricultural to non- agricultural land use (residential, commercial, industrial, etc.). From a more technical perspective, conversion is defined as the act of authoriz ing the change of the current use of a piece of land into some other use.

16.2 DAR's STAND ON CONVERSION Is the DAR against land use conversion?

No. The DAR recogniz es that land use conversion is necessary, even inevitable in the country's march to progress. Many agricultural lands will have to be given up in favor of industrial estates, commercial centers, residential subdivisions, etc. Moreover, CARP is not the only program of Government. Other important programs on tourism, housing, and industrializ ation, among others, are being pursued and these all require land. What the DAR is against is indiscriminate and wasteful land use conversion. What the DAR wants is to direct land use conversion such that the productive agricultural lands are preserved for agriculture and the other programs are implemented in the marginal agricultural areas.

It should be noted that agriculture can be carried out only in certain types of land. Thus, prime agricultural lands should rightfully be considered a finite natural resource, further depletion of which would threaten national food security. In contrast, housing and industrializ ation, for example, require land merely for space and may therefore be implemented in lands marginal for agriculture.

When conversion of agricultural lands coincides with the objectives of the Comprehensive Agrarian Reform Law to promote social justice, industrializ ation, and the optimum use of land as a national resource for public welfare, it shall be pursued in a speedy and judicial manner.

16.3 DAR's LEGAL MANDATE

What is the DAR's legal mandate in land use conversion?

Executive Order No. 129- A, Section 4 mandates the DAR to "approve or disapprove the conversion, restructuring or readjustment of agricultural lands into non-agricultural uses". Section 5 of the same EO authoriz es the DAR to "have exclusive authority to approve or disapprove conversion of agricultural land for residential, commercial, industrial, and other land uses as may be provided for by law".

Section 65 of RA 6657 likewise empowers the DAR to authoriz e under certain conditions, the reclassification or conversion and the disposition of lands awarded to agrarian reform beneficiaries.

Finally, Section 4 of Memorandum Circular No. 54, Series of 1993 of the Office of the President, provides that "action on application for land use conversion on individual landholdings shall remain as the responsibility of the DAR, which shall utilize as its primary reference, documents on the comprehensive land use plans and accompanying ordinances passed upon and approved by the local government units concerned, together with the National Land Use Policy, pursuant to RA No. 6657 and EO-129-A." What is the Department of Justice Opinion No. 44 and how does this affect DAR's authority to approve or disapprove conversions?

Under the Department of Justice Opinion No. 44, Series of 1990, a parcel of land is considered non- agricultural — and, therefore, beyond the coverage of CARP — if it has been classified as residential, commercial, or industrial in the City or Municipality Land Use Plan or Zoning Ordinance approved by the Housing and Land Use Regulatory Board (HLURB) before 15 June 1988, the date of effectivity of CARL.

Under this Opinion, a parcel of land which is planted to coconut cannot be covered by CARP if it has been reclassified into the town's industrial z one prior to 15 June 1988. If a parcel of land is covered by this DOJ opinion, must its landowner still file an application for conversion with the DAR?

No. All lands falling under this category, i.e., those lands already classified as commercial, industrial or residential before 15 June 1988 no longer need any conversion clearance. What the landowner or his duly authoriz ed representative needs is an exemption clearance from the DAR. Application for such clearance should be filed with the Regional Office of the DAR where the land is located. (The procedures and requirements are detailed in AO No. 06, Series of 1994).

What policy guidelines govern land use conversion?

To operationaliz e the provisions of various laws, the Department of Agrarian Reform has issued several policy guidelines to regulate land use conversion. The latest,

Administrative Order No. 12, Series of 1994, "Consolidated and Revised Rules and Procedures Governing Conversion of Agricultural Lands to Non-Agricultural Uses", now consolidates and revises all existing implementing guidelines issued by the DAR, taking into consideration other Presidential Issuances and national policies related to land use conversion.

Thus, AO No. 12- 94 repeals AO Nos. 8 and 15, Series of 1990 and 1988, General Order No. 01, Series of 1989, AO Nos. 15, 16, and 18, Series of 1989, AO No. 07, Series of 1992 and amends AO Nos. 1 and 2, Series of 1990.

The provisions of this latest Administrative Order, shall however, be applicable only to all application filed on or after its date of effectivity on 10 November 1994. All other applications filed previous to this AO shall be governed by the pertinent administrative orders or issuances in force at the time of the filing of the applications, and shall be processed accordingly.

On the other hand, conversion for selected Regional Agro- Industrial Centers, Tourism Development Area and sites for socializ ed housing shall be processed under Joint NEDA- DAR Memorandum Circular No. 01, Series of 1993 issued pursuant to Executive Order No. 124, Series of 1993 of the Office of the President.

16.4 DAR's ROLE IN CONVERSION

Operationally, what is the DAR's role in land use conversion?

Aside from being the final approving authority, the DAR basically performs the following functions: a. Evaluate the documents submitted for completeness and veracity;

b. Determines whether or not the subject land is covered by CARP;

c. Determines whether or not the application should be approved based on the criteria set for land use conversion;

d. Ensures that the potential agrarian reform beneficiaries are consulted on the proposed land use conversion and are properly given their disturbance compensation and other benefits;

e. Monitors approved application for compliance with the requirements;

f. Together with the DOJ, monitors illegal conversions and recommends and files criminal cases against landowners and developers who undertake illegal conversions.

16.5 MECHANICS OF LAND USE CONVERSION: APPLICATION, APPROVAL, MONITORING Who may apply for land use conversion?

The following may apply for conversion:

a. Owners of private agricultural lands or other persons duly authoriz ed by the landowner;

b. Farmer beneficiaries of the Agrarian Reform Program after the lapse of five (5) years from award, reckoned from the date of registration of their landholdings, and who have fully paid their obligations and are qualified, or persons duly authoriz ed by them.

c. Government agencies, including government- owned or controlled corporations. When may an application for conversion be granted?

Conversion may be allowed under the following situation:

1. If at the time of the application, the lands are reclassified as commercial, industrial and residential in the new or revised town plans promulgated by the Local Government Unit (LGU) and approved by the HLRB or by the Sangguniang Panlalawigan (SP) after 15 June 1988, in accordance with Section 20 of RA 7160 (The New Government Code), as implemented by Malacañang Memorandum Circular No. 54, Executive Order No. 72, Series of 1993.

2. If at the time of the application, the land still falls within the agricultural z ones but:

a. the land has ceased to be economically feasible and sound for agricultural purposes, as certified by the Regional Director of the Department of Agriculture (DA); or b. the locality has become highly urbaniz ed and the land will have a greater economic value for residential, commercial or industrial purposes, as certified by the local government unit.

3. If the city/municipality does not have a comprehensive development plan and z oning ordinance duly approved by HLRB/SP but the dominant use of the area surrounding the land subject of the application for conversion is no longer agricultural, or if the proposed land use is similar to; or compatible with the dominant use of the surrounding areas as determined by the DAR.

In all cases, conversion shall be allowed only if the DENR issues a certification that the conversion is ecologically sound. May conversion be granted for lands covered by a notice of acquisition?

No. No application for conversion shall be given due course if the subject land has been covered by any of the following: a. Notice of Acquisition under compulsory acquisition or voluntary offer to sell;

b. Application for stock distribution duly received by DAR; or

c. Perfected VLT/DPS agreement between the landowner and the beneficiaries. What other lands are non-negotiable for conversion?

Pursuant to Administrative Order No. 20, Series of 1992 (Interim Guidelines on Agricultural Land Use Conversion and Memo Circular No. 54, Series of 1993 both of the Office of the President, the following are non- negotiable for conversion.

1. All irrigated lands where water is available to support rice and other crop production.

2. All irrigated lands where water is not available for rice and other crop production but within areas programmed for irrigation facility rehabilitation by the Department of Agriculture (DA) and the National Irrigation Administration (NIA).

3. All irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land use conversion or reclassification. May conversion be granted for lands with qualified beneficiaries?

the average of the annual gross value of the harvest on their actual landholdings during the last five (5) preceding calendar years.

In addition to ensuring that the ARBs are properly paid the disturbance compensation, the DAR shall exert all efforts to see to it that free homelots and assured employment for displaced beneficiaries are provided by the applicant/developer.

Are farmworkers also entitled to disturbance compensation?

Yes. The DAR rules in AO 01- 90 that payment of disturbance compensation is not limited to tenant who will be displaced but also includes farmworkers.

What shall the DAR do in case the ARBs are asking for a disturbance compensation above the level prescribed by law?

The DAR's principal responsibility in such case is to explain the provisions of the law to the farmers. The DAR may try to persuade the parties, particularly the landowner, to a compromise but any increase beyond the legal requirement is at the discretion of the landowner.

May conversion be granted for any proposed project?

No. To prevent circumvention of coverage under the CARP, conversion shall be granted only upon evidence that the project to be established therein is viable and beneficial to the community affected. How fast should the project be implemented?

Again to prevent circumvention of CARP, the land development phase of the project should be completed within one year from the issuance of the Order of Conversion where the area is five hectares or less. Should the area exceed five hectares, an additional year shall be allowed for every five hectares or a fraction thereof but in no case shall the completion of development extend beyond five years from the

issuance of the Order of Conversion. Thus, a twelve (12) hectare area may be developed within three years, but a 50- hectare landholding should be developed within five (5) years.

May the DAR cancel or withdraw its approval for land use conversion?

Yes. The DAR may cancel or withdraw authoriz ation for land use conversion, based on the following grounds:

a. Misrepresentation or concealment of material facts in the application, e.g. capacity of the developer to undertake the project; b. Failure to implement and complete the land development of the area within the specified time; and

c. Any other violation of the rules and regulations which are material to the grant of the conversion order. What will happen to the lands covered by disapproved petitions for conversion or cancelled or withdrawn conversion order?

Lands covered by a petition for conversion which had been disapproved or those covered by a conversion order which had been cancelled or withdrawn shall be placed under CARP compulsory coverage, in accordance with the schedule of implementation prescribed in Section 7 of RA 6657 and be distributed to all qualified beneficiaries. Where should the application for conversion be filed and what are the procedures to be followed?

Under the new guidelines, while forms can be obtained from any of the field offices, filing should be done at the Regional Office with the DAR Regional Center for Land Use Policy, Planning and Implementation (RCLUPPI). The application should contain the documentary requirements enumerated in Section 7 of AO- 12, Series of 1994. Application with incomplete documents will not be acted upon and the applicant will be informed accordingly.

There are also new procedures to be followed which clearly distinguish the role of various offices. 1. The Regional Center for Land Use Policy, Planning and Implementation (RCLUPPI):

* receives the application and reviews the required documents for completeness and compliance with all the requisites; * sends Notice of Land Use Conversion to the DAR Municipal Office (DARMO) for posting;

* conducts field investigation and dialogues with affected parties and validates information in the documents; * prepares findings and recommendations;

* prepares land use conversion folder for every application attaching all the required documents submitted by the applicant and endorse it to the Center for Land Use Policy, Planning and Implementation (CLUPPI) through the Regional Director, except:

applications for conversion involving five (5) hectares or less of land that are within the non- agricultural z one per Land Use Plan approved by the HLRB/Sangguniang Bayan which shall be submitted to the Regional Director.

Subsequent applications by the same landowners or his representative, however, on a portion of the same shall be forwarded to CLUPPI for resolution. 2. DAR Regional Director

* Approves or disapproves applications covering lands within the non- agricultural z ones with areas of five (5) hectares or less on an aggregate or project basis; * Forwards applications already acted upon to the RCLUPPI for proper disposition;

* Submits monthly report on approved or disapproved applications, including pending applications to the CLUPPI, copy furnished the DARPO and DARMO. 3. Center for Land Use Policy, Planning and Implementation (CLUPPI)

* reviews and evaluates all land use conversion folders received from RCLUPPI;

* whenever necessary, conducts field investigation on the area and holds dialogues with government officials and entities, accredited NGOs and affected farmers and farmworkers with the assistance of the MARO;

* for lands fifty (50) hectares or less, prepares the draft order recommending approval or denial and forwards the same to the Undersecretary for Policy and Planning who shall act on it within 45 working days from the date of receipt of folder from the RCLUPPI;

* for areas above 50 hectares, prepares fact sheet and accomplishes the findings and recommendations and forwards these to the PARC Land Use Technical Committee (PLUTC) for further review within ten (10) days from receipt of the folder from RCLUPPI;

* submits quarterly report on the status of all applications to the Secretary, through the Undersecretary for PPO, copy furnished the PARC Secretariat. 4. Undersecretary for Policies and Planning:

* reviews and approves or disapproves application for conversion of lands not exceeding fifty (50) hectares within five (5) working days from receipt of the folder from CLUPPI;

5. PARC Land Use Technical Committee (PLUTC):

* reviews completeness and consistency of all folders received from CLUPPI, requires submission of additional documents or information and conducts field investigation (if necessary);

* recommends approval or disapproval of applications for conversion of lands above fifty (50) hectares and forwards the same to the Secretary for his consideration. 6. DAR Secretary:

* approves or disapproves land use conversion applications involving above 50 hectares within five (5) working days from receipt of folder; and * forwards the signed order to CLUPPI.

What is the recourse of an applicant or any aggrieved party who does not agree with the Regional Director's decision?

A motion for reconsideration of the decision of the Regional Director can be filed within fifteen (15) days from receipt of the order or decision. DCIEac Running of the period is suspended once the motion is filed. If the motion is denied, the aggrieved party can still make an appeal to the DAR Secretary. An appeal to the Secretary shall be made in the form of a memorandum and upon payment of P500.00 as appeal fee.

On the other hand, appeal from the decision of the Undersecretary shall be made to the Secretary, and from the Secretary to the Office of the President or the Court of Appeals, as the case may be. The mode of appeal/motion for reconsiderations, and the appeal fee, from the Undersecretary to the Office of the Secretary shall be the same as that of the Regional Director to the Office of the Secretary.

Are there mechanisms installed to ensure that the terms and conditions of the approved conversion are complied with?

Yes, there will be monitoring of compliance. The RCLUPPI shall monitor compliance by the applicant/developer based on the terms and conditions stipulated under AO No. 12- 94, including the required posting of the approved order in a conspicuous place of the project area. The AO provides that failure to post such notice in the project area shall be a ground for the suspension of the development of the area and for possible cancellation of the conversion order. The RCLUPPI shall submit monthly reports to the Undersecretary for Policy and Planning through the CLUPPI of all land use conversion transactions, copy furnished the DARPO and the DARMO.

In turn, the CLUPPI shall evaluate the reports submitted by the RCLUPPI and render quarterly reports on the status of all land use conversion to the Secretary, copy furnished the PARC Secretariat.

16.6 LGU's AUTHORITY TO RECLASSIFY

Does RA 7160, otherwise known as the Local Government Code of 1991 give the cities and municipalities the authority to convert agricultural lands to non-agricultural uses? No, what the Code provides is the authority of cities and municipalities to reclassify lands into uses within their jurisdiction subject to certain limitations and conditions. How does reclassification differ from land use conversion?

Reclassification is the act of specifying how agricultural lands shall be utilized for non- agricultural uses such as residential, industrial, commercial, as embodied in the land use plan. It also includes the reversion of non- agricultural lands to agricultural use. On the other hand, land use conversion is the actual change of agricultural land to non-agricultural uses.

Although reclassification and conversion are similar in that they both determine whether a parcel of land should be used for agricultural or other purposes, they are different in approach — reclassification is done through the town planning process taking into account the needs of the inhabitants for space for housing, industrial, commercial and other non- agricultural uses, while conversion goes through the DAR's evaluation process which takes into account the tenants and farmworkers, if any, on the landholding, the ascertainment of disturbance compensation, and on who will pay said disturbance compensation. Furthermore, although land reclassification can be indicative of which