January 28, 1997
DAR OPINION NO. 08-97
Mr. Marciano M. Pineda
General Manager
National Housing Authority
Quezon Memorial, Elliptical Road
Diliman, Quezon City
Dear Mr. Pineda:
This has reference to your letter dated 06 November 1996 addressed to the Department of Agrarian Reform seeking clarification and assistance relative to the acquisition of a landholding which your Office intends to use for the establishment of a housing project located at Barangay Bito-on, Jaro, Iloilo City.
You state that the subject property has an area of 2.0-hectare, described as Lot No. 2407-A, covered by TCT No. EP-34 and registered in the name of Domiciano A. Hernia thru Emancipation Patent No. A-190601; that said landholding will be the site of a housing project proposed by Senator Franklin Drilon for the benefit of squatters residing along the danger areas of Iloilo river; that said proposed housing project is to be funded from Countrywide Development Funds (CDF) of Senator Franklin Drilon, however, there is an express prohibition annotated at the grantees Transfer Certificate of Title relative to the transfer and disposition of said property; and that you are asking for the issuance of DAR Clearance from the Provincial Agrarian Reform Officer (PARO) of Iloilo Province to effect registration of said property with the Register of Deeds of Iloilo.
Please be informed that Presidential Decree No. 27 expressly provides that title to lands acquired pursuant thereto or the Land Reform Program of the Government shall not be transferable except by hereditary succession or to the Government. However, Section 6 of Executive Order No. 228 provides that ownership of lands acquired by farmer-beneficiaries may be transferred after full payment of amortizations. The right of disposition is clear from DAR Administrative Order No. 08, Series of 1995 (copy attached) which allows the transfer of awarded lands through hereditary succession or to the government after full payment of amortization's. It is beyond cavil that National Housing Authority (NHA) is a government agency tasked to provide housing for the benefit of the poor.
While transfer in favor of NHA is highly favored for undoubtedly, it is the indigent that would benefit from it, the same is not without limitation. Administrative Order No. 20, Series of 1992 of the Office of the President expressly provides that "all irrigated lands shall not be subject to and non-negotiable for conversion". In this light, transfer in favor of NHA cannot be granted as a matter of right even if it is a government agency if the subject landholding is irrigated. Conversely, if the landholding is unirrigated, the same can be devoted to the purpose intended provided the requirements prescribed under DAR Administrative Order No. 12, Series of 1994 on land use conversion are complied with. Such being the case, the NHA should still file an application for conversion.
We hope to have clarified the matter with you.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning