November 10, 1998
DAR OPINION NO. 109-98
HON . LEA ASTRUD T . SANTIAGO
City Councilor
City Council's Office
Marikina City
HON . EFREN S. ANGELES
City Councilor
City Council's Office
Marikina City
Dear Councilors Santiago and Angeles:
This refers to your letter dated 24 August 1998, stating that your City Council passed an ordinance converting park lots into permanent relocation sites and subsequently an ordinance was passed allowing the sale of said park lots to the residents thereof.
Your letter posed the following queries:
1. Does Section 458 of Republic Act No. 7160 (Local Government Code) allow Local Government Units (LGU) to convert park lots into relocation sites without the knowledge and permission of the Department of Agrarian Reform and other concerned government agencies?
2. Do Local Government Units have the power to sell said park lots to the occupants of the said area?
The provision of the Local Government Code of 1991 pertinent to your first query provides:
"Sec. 458. Powers, Duties, Functions and Compensation.
(2) (VIII) Reclassify land within the jurisdiction of the city, subject to the pertinent provisions of this Code;"
The above provision clearly refers to land reclassification, which is within the power and Jurisdiction of your council. Reclassification is the act of specifying how agricultural lands shall be utilized for non-agricultural uses. It also includes reversion of non-agricultural lands to agricultural use. Land Use Conversion, on the other hand, is defined as the actual chance of agricultural lands to non-agricultural uses. Although seemingly, reclassification and conversion are similar in the sense that they both determine whether a parcel of land should be used for agricultural or other purposes, they differ in approach. Land Reclassification is done through the town planning process, subject to review and approval by the Provincial Sanggunian while the conversion of agricultural lands to non-agricultural uses goes through the DAR's evaluation process subject to existing agrarian laws, rules and regulations, as provided for under DAR Administrative Order No. 07, Series of 1997 (copy attached). Thus, insofar as the legality and propriety for conversion of agricultural lands or lands classified as such into non-agricultural uses are concerned, the same must be adjudicated by DAR which has the exclusive authority and legal mandate to approve or disapprove the conversion of agricultural lands into non-agricultural uses (Sections 4(j) and S(1) of Executive Order No. 129-A, Series of 1987.
Moreover, it bears stressing here that before enacting the ordinance reclassifying agricultural lands, the Sanggunian concerned must first secure the following certificates:
1. Certification from DA indicating the total area of Existing agricultural lands in the city or municipality, that such lands are not classified as non-negotiable for conversion or reclassification; and that the land has ceased to be economically feasible and sound for agricultural purposes.
2. Certification from DAR indicating that such lands are not distributed, or not covered by a notice of coverage or not voluntarily offered for coverage under CARP.
Relative to the second issue, Section 18 of the Local Government Code provides in part:
"Sec. 18. Power to Generate and Apply Resources. — Local government units shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, program objectives and priorities;
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to acquire, develop, lease, encumber, alienate, or otherwise dispose of real property held by them in their proprietary capacity . . ."
Based on the foregoing, a local government unit is thus authorized to dispose of real property held by them in their proprietary capacity. Therefore, if the City of Marikina holds the said park lots (assuming that they are not classified as agricultural) in its proprietary capacity, the city council has the authority to reclassify (not convert) said park lots into relocation sites or to pursue any lawful project which the City Council may deem proper and beneficial for the City of Marikina. However, if the said park lots are classified as public lands, the awarding or selling thereof cannot be made by the city/municipal council through a mere ordinance. Instead, Commonwealth Act No. 141, otherwise known as the Public Land Act, shall govern, which in turn provides that public lands cannot be subsequently alienated unless authorized by Congress.
Thank you for referring this particular concern to us and we hope to have enlightened you on the matter.
Very truly yours,
(SGD.) DANILO T. LARA
Undersecretary for Legal Affairs, and Policy and Planning