March 22, 1999
DAR OPINION NO. 24-99
HON . EDWARD C . LIGAS
Commissioner
Presidential Commission For The Urban Poor
Malacañang
Dear Commissioner Ligas:
This refers to your letter dated 04 February 1999 addressed to Secretary Horacio R. Morales, Jr. relative to your request for clearance to classify the properties occupied by the members of VELS Homeowners Association, Inc. as a residential area.
You state that Presidential Commission for the Urban Poor (PCUP) is requesting the Department's assistance in connection with the plan of VELS Homeowner's Association, Inc. to purchase the subject properties located at Sitio Bitiong, Barangay San Luis, Antipolo City which has a total area of 27,394 square meters, more or less, divided into two (2) contiguous parcels of land with areas of 13,697 square meters each, covered by TCT Nos. 956-94 and 717-89; that on or about August 1998, the Sangguniang Panglunsod of the City of Antipolo adopted Resolution No. 57-98: A Resolution Reclassifying Two (2) Parcels of Land Covered And Embraced by TCT No. 95694 and TCT No. 71789 From Agricultural Rawland to Residential; that the National Housing Authority, and the PCUP are assisting this group of informal occupants to facilitate the acquisition of said properties and that the only legal obstacle is a clearance to classify said properties as a residential area.
Please be informed at the outset that reclassification is different from that of conversion. Land use reclassification by itself does not place an agricultural property outside the purview of the Comprehensive Agrarian Reform Program (CARP) since it merely specifies how agricultural lands shall be utilized for non-agricultural uses as embodied in the land use plan. In other words, it merely allocates land to different activities or classes of land uses, evolved and enacted through the town planning and zoning process. It is not synonymous with conversion for while the authority to reclassify is lodged with the Local Government Unit (LGU), the authority to convert remains with the DAR.
Pursuant to Section 4 (j) of Executive Order No. 129-A, Series of 1987, the Department of Agrarian Reform is mandated to "approve or disapprove applications for conversion, restructuring or readjustment of agricultural lands into non-agricultural uses". Section 4 (l) of said law likewise vests in the DAR the exclusive authority to approve or disapprove applications for conversion of agricultural lands for residential, commercial, industrial, and other land uses. Applications for conversion must comply with the documentary requirements and procedures as laid down under DAR Administrative Order No. 07, Series of 1997 (copy attached).
Agricultural lands classified or zonified for non-agricultural uses by LGUs and approved by the HLURB before June 15, 1988 (i.e., effectivity of R.A. No. 6657 — CARL), shall be governed by DAR Administrative Order No. 6, Series of 1994 (guidelines on exemption from CARP coverage). On the other hand, conversion may be allowed if at the time of application, the lands are reclassified as commercial, industrial, residential or non-agricultural in the new or revised town plans promulgated by the Local Government Unit (LGU) and approved by the Housing and Land Use Regulatory Board (HLURB) or by the Sangguniang Panlalawigan (SP) after June 15, 1988 in accordance with Section 20 of Republic Act No. 7160, as implemented by M.C. No. 54, and E.O. No. 72 Series of 1993 of the Office of the President. Under Memorandum Circular No. 1, Series of 1999 and in line with the President's directive dated December 28, 1998, however, the issuance of land conversion clearances is suspended, and new applications shall not be accepted in the meantime that DAR is reviewing the guidelines and until such time the new revised rules and regulations on land use conversion are issued. Thereafter, new applications for land use conversion may be accepted pursuant to the new/revised guidelines.
Finally, it bears noting that should the subject properties fall within the Lungsod Silangan Townsite as duly proved and certified, and the same are not tenanted rice and corn lands. with Certificates of Land Transfer/Emancipation Patents (CLTs/EPs), the provisions of DAR Memorandum Circular No. 25, Series of 1997 (particularly Item 7 thereof) as amended by Memorandum Circular No. 5, Series of 1998 (copies herewith attached) may apply.
We hope to have clarified the matters with you and please be guided accordingly.
Very truly yours,
(SGD.) DANILO T. LARA
Undersecretary for Legal Affairs, and Policy and Planning