January 8, 1996

DAR OPINION NO. 01-96

Ms. Josephine Angsico

Assistant Manager for Visayas

National Housing Authority

Leyte/Samar Projects

Tacloban City

Dear Ms. Angsico:

This refers to your request for clarification regarding the implementation of the DAR, NHA, Palo-LGU Memorandum of Agreement on the landholding within the Kauswagan Resettlement Project.

As gleaned from the documents on hand as wall as from the verbal information given by Engr. Rizalde Mediavillo, you wish to be clarified on whether the NHA can pursue the development as a housing site of a five-hectare portion of the property within the Kauswagan Resettlement Project pursuant to the MOA between and among the DAR, NHA and the Palo-LGU, notwithstanding the fact that per NHA's mandate, it can only enter into socialized housing projects with NGAs, LGUs and cooperatives, whereas the project site is embraced by the CLOA issued to farmer-beneficiaries. Simply stated, DAR clarification is sought on whether the development into a residential site of a portion of the Kauswagan Resettlement property pursuant to the DAR, NHA and Palo-LGU MOA can be pursued, notwithstanding the fact that the project site is covered by the CLOA issued to the farmer-beneficiaries and therefore not the property of a national government agency, local government unit nor a cooperative within which NHA's housing projects can be undertaken.

DAR submits that the development of the area as a housing site pursuant to the said MOA can be legally undertaken, if CLOA No. 00025530 and the corresponding title (OCT No. 405) are cancelled by the Register of Deeds, pursuant to the Order dated 11 December 1995 issued by Regional Adjudicator Felixberto Diloy in the case entitled "Department of Agrarian Reform versus the Register of Deeds of Leyte and Diosdado Murillo, et al." in DARAB Case No. 08092-95-L-Reg. It is observed that said DARAB Order can only be implemented when the same becomes final and executory. Upon implementation (that is, upon cancellation of the title to the FBs), possession of the property would effectively be transferred to DAR, pursuant to the Deed of Transfer dated 11 August 1992 executed by the Board of Liquidators, empowering it to oversee the development of the site for subsequent distribution thereof to settlers or agrarian reform beneficiaries.

Records reveal that as early as 19 November 1976 the DAR thru then Sec. Conrado F. Estrella and the Leyte Sab-a Basin Development Authority (LSBDA) thru then Administrator Lauro Castillo entered into a Memorandum of Agreement pursuant to P.D. 625 (creating the LSBDA), authorizing, granting and empowering the DAR to use and develop as a relocation area or a model resettlement site, the mass of land covering the northwestern portion of the Municipality of Palo adjacent to the Municipality of Sta. Fe and the City of Tacloban, containing an approximate area of 1,300 hectares. This area was subsequently known as the Kauswagan Agricultural Cooperative Settlement Project, as reflected in the Survey Plan approved by the DENR on 10 May 1993. Per field report of DAR Region 08, DAR has undertaken development projects within the area pursuant to said MOA and has delineated certain portions as school sites, public market site, church site, housing site, provincial jail site, while some areas are timber land, a portion is occupied by Lake Danao, some lots have no claimants while only 312 lots out of 558 have awardees/claimants, per the survey plan approved by DENR. It is clear that the CLOA issued to Diosdado Murillo, et al. is erroneous in that it covered areas not subject to distribution pursuant to CARL. Since a petition for the cancellation of said CLOA has been filed, and an Order granting said petition has been issued, the finality of said Order will pave the way for its cancellation, thus placing the property within DAR jurisdiction and enabling the development by NHA of the portion designated as a housing site.

We hope that DAR has clarified its position regarding the matter.

Very truly yours,

(SGD.) HECTOR D. SOLIMAN

Assistant Secretary

Legal Affairs Office

Copy furnished:

Dir. Wilfredo B. Leaño

Regional Director

DAR Region 08

Sto. Niño Extension, Tacloban City

Mr. Abelardo D. Elvas

Acting MARO, KACSP

Palo, Leyte

CARPO Silverio G. Gempeson

DAR Region 08

Tacloban City