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July 19, 2011

DAR ADMINISTRATIVE ORDER NO. 02-11

SUBJECT : Rules on the Conversion of Agricultural Lands for GovernmentHousing Projects Intended for Armed Forces of the Philippines and PhilippineNational Police Personnel Pursuant to Office of the PresidentAdministrative Order

No. 9,Series of 2011

Pursuant to Sections 65 and 49 of Republic Act (R.A.) No. 6657 (Comprehensive

Agrarian Reform Law of 1988), as amended byR.A. No. 9700, Sections 4 (j) and 5 (l) of

Executive Order (E.O.) No. 129-A (Reorganization Act of the Department of Agrarian

Reform), the pertinent provisions of R.A. No. 8435 (Agriculture and Fisheries

Modernization Act),E.O. No. 45-2001, and Office of the President (O.P.)Administrative

Order (A.O.) No. 9, Series of 2011, and to provide an effective mechanism for evaluating

applications for the conversion of agricultural lands into non-agricultural uses,specifically, for government housing projects for military and police personnel, these

Rules are hereby promulgated.

ARTICLE I

Preliminary Provisions

SECTION 1. General Principles.The conversion of agricultural lands for government

housing projects shall be governed by the following principles:

1.1. The State prioritizes the improvement of the welfare of governmentemployees, including military and police personnel, by providing them and their

families with decent and affordable shelter; and

1.2. The State recognizes the sacrifices of military and police personnel who put

their lives at risk to uphold the laws of the land and maintain peace and order in the

country, and is aware of the need to support them and their families by making

available decent and affordable housing.

SECTION 2.Applicability of the Rules.These Rules shall apply only to applications

for conversion of agricultural lands for government housing projects for the military

and police personnel, based on the provisions of O.P.A.O. No. 9, Series of 2011, and

consistent with Section 6.2 ofDepartment of Agrarian Reform (DAR) A.O. No. 1, Series

of 2002 which expressly provides that housing projects are priority development

projects for land conversion.

SECTION 3.Definition of Terms. All references in these Rules in the masculine

gender form (he/him/his) shall interchangeably mean the feminine form (she/her/hers) or
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may refer to a group (it/its/their). As used in this Order, the terms enumerated below are

defined, as follows:

3.1. Agricultural land refers to land devoted to or suitable for the cultivation of

the soil, planting of crops, growing of trees, raising of livestock, poultry, fish or

aquaculture production, including the harvesting of such farm products and otherfarm activities and practices performed in conjunction with such farming operations

by persons whether natural or juridical, and which are not classified by law as

mineral land, forest or timber land, or national park, or classified for residential,

commercial, industrial, or for other non-agricultural uses before 15 June 1988. AHSaTI

3.2. Government Housing Project refers to the land and housing development

and related activities undertaken by the National Housing Authority (NHA),

pursuant to its mandate to provide socialized housing to Filipino families under its

various housing programs.

3.3. Land Use Conversion refers to the act or process of changing the current

physical use of a parcel of agricultural land into some other use or for another

agricultural use other than the cultivation of the soil, planting of crops, and growing

of trees, including the harvesting of produce therefrom, as approved by DAR.

SECTION 4. Statement of Policies.The conversion of agricultural lands to residential

uses intended exclusively for government housing projects for military and police

personnel shall be governed by the following policies:

4.1 The Administration, with a specific instruction embodied in O.P.A.O. No.

9, Series of 2011, directs the DAR to provide a special facility to expedite the

conversion of agricultural lands to residential uses for government housing projects

for military and police personnel. As such, the following DAR policies on such land

use conversion are hereby prescribed:

4.1.1. Considering that it is the NHA which is and will be the lead agency

in the government housing projects intended for military and police

personnel, it is imperative that all applications for conversion for such

projects shall require a Certification from the NHA confirming that the

subject lands are identified by the latter as priority areas per O.P.A.O.

No. 9, Series of 2011, before DAR processing of said applications cancommence.

4.1.2. The documentary requirements for such an application on land use

conversion, particularly the various certifications from other concerned

agencies such as the Housing and Land Use Regulatory Board (HLURB),

Department of Agriculture (DA), and Department of Environment and
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Natural Resources (DENR), and even the certification from the Municipal

Agrarian Reform Officer (MARO) of DAR, need not be submitted

simultaneously with the application or immediately to the DAR before any

processing of said application can commence. However, deliberationsby the

Center for Land Use Policy, Planning and Implementation (CLUPPI)

Committee shall be conducted only upon submission of the abovementionedcertifications and pertinent documents required in this Order.

4.1.3. In recognition of the social relevance of said government housing

projects and also of the limited resources available in constructing shelters,

the DAR will waive the cash bond as a requirement before any housing

development for military and police personnel could be undertaken on the

subject land.

4.2. The existing official directives/issuances which created the CLUPPI and/or

the Regional Center for Land Use Policy, Planning and Implementation (RCLUPPI)and its existing Secretariat shall be modified under this Rules for the processing all

land use conversion applications for government housing projects for military and

police personnel. Aside from being the official repository of all records and

documents pertaining thereto, the CLUPPI shall be the one-stop processing center

for such conversion applications undertaken in line with government housing

projects under O.P.A.O. No. 9, Series of 2011.

4.3. Agricultural lands subject of Conversion Orders issued pursuant to these

Rules shall be strictly covered by the following policy parameters:

4.3.1. These shall be limited to the specific use of the land authorized in

the Conversion Order;

4.3.2. The period to complete land development shall be in accordance

with the Conversion Order and the stages of development shall follow the

schedule indicated in the detailed site development, work and financial plans,

and in no case shall the period of development extend beyond five (5) years

from issuance of the Conversion Order or the time frame specified therein;

4.3.3. The conditions of the Conversion Order shall be binding upon

successors-in-interest of the property;

4.3.4. Grantees of approved land conversions shall allow duly authorized

representatives of the DAR free and unhampered access to the property

subject of the Conversion Order to monitor compliance with the terms and

conditions thereof;
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4.3.5. The land use as authorized by the Conversion Order shall be

annotated on the title of the subject property; and TAHcCI

4.3.6. Conversion Orders shall be without prejudice to the ancestral

domain claims of indigenous peoples, if any, pursuant toR.A. No. 8371, or

the Indigenous Peoples Rights Act.

4.4. Notwithstanding their receipt of disturbance compensation, displaced share

tenants, agricultural lessees, actual tillers, and legitimate occupants affected by the

conversion of the agricultural land for the government housing projects for military

and police personnel subject of these Rules, may qualify as potential ARBs in

other landholdings, subject to existing guidelines on land acquisition and

distribution.

4.5. The concerned DAR Provincial Office (DARPO) shall carefully monitor

the progress of the implementation of the development plan as well as thecompliance with all the conditions of the Conversion Order. Upon a finding that

there is failure to develop the area within the prescribed period or that any violation

of the Conversion Order is committed, the Conversion Order shall be revoked by

the DAR Secretary.

ARTICLE II

Application for Conversion

SECTION 5. Who May Apply for Conversion.The following persons may apply for

land use conversion for government housing projects for housing development formilitary and police personnel as defined in these Rules:

5.1. Owners of private agricultural lands or other persons duly authorized by

the landowner;

5.2. Beneficiaries of the agrarian reform program after the lapse of five (5)

years from award, reckoned from the date of the issuance of the Certificate of

Landownership Award (CLOA), and who have fully paid their obligations and are

qualified under these Rules, or persons duly authorized by them; and

5.3. Government agencies, including government-owned or controlled

corporations, and Local Government Units, which own agricultural lands as their

patrimonial property.

In all cases, no person may apply for land use conversion under these Rules unless they

have specific written certification from the NHA that the subject landholding is to be

developed exclusively for military and police personnel housing. The written certification

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issued must state the name of the person certified, which must be the same person

applying for conversion, and the property where the housing units shall be developed,

which must be the same landholding being applied for. The date of application must not

be more than six (6) months from the date of the issuance of the written certification

which must be stated therein.

SECTION 6.Approving Authority. The approving authority for all applications for

conversion for such government housing projects for military and police personnel shall

be the DAR Secretary regardless of the area involved.

SECTION 7.Procedure Prior to the Filing of Application for Land Use Conversion for

Government Housing Project.

7.1. The applicant shall:

7.1.1. Secure one complete set of the Land Use Conversion (LUC)Application Form, certification forms, and the checklist of requirements from

any of the following DAR offices:

7.1.1.1. Center for Land Use Policy, Planning and Implementation

(CLUPPI) at the DAR Central Office (DARCO);

7.1.1.2. Regional Center for Land Use Policy, Planning and

Implementation (RCLUPPI) at the DAR Regional Office (DARRO); or

7.1.1.3. DAR Provincial Office (DARPO).

7.1.2. Immediately thereafter, fill up the Application Form, erect in a

conspicuous place within the subject property a public notice on the

application for conversion ("public notice billboard"), following the

guidelines provided in Section 13 of these Rules.

7.1.3 Prepare two (2) sets of Land Use Conversion Folders (LUCFs), after

accomplishing the Application Form and erecting the billboard

abovementioned, to be submitted to the MARO.

The first folder shall contain a readable photograph of the front view of thebillboard(s) and clear photocopies of the following:

7.1.3.1. Duly accomplished Application Form; HaAIES

7.1.3.2. True copy of the Original Certificate of Title/Transfer

Certificate of Title (OCT/TCT) of the subject land certified by the

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Register of Deeds (ROD) not earlier than thirty (30) days prior to the

application's filing date;

7.1.3.3. True Copy of the OCT/TCT of the subject land as of 15 June

1988 and of all successor titles until the present title (s) of the subject

landholding(s);

7.1.3.4. Directional sketch map required under Section 10.20 of these

Rules;

7.1.3.5. MARO Certification to be filled up by the MARO assigned in

the municipality where the agricultural land is located;

7.1.3.6. Notice of Land Use Conversion Application to be filled-up

and posted in conspicuous places by the MARO;

The second folder shall contain the same documents specified in the

foregoing, excluding the photographs of the billboard.

7.2. The MARO shall:

7.2.1. Keep the first LUCF for the DAR Municipal Office's (DARMO) file

and transmit the second LUCF to the PARO within two (2) days from receipt

of the LUCFs from the applicant;

7.2.2. Within two (2) days from receipt of the LUCFs, post the Notice of

Land Use Conversion Application in a conspicuous place in the municipalhall and in the barangay hall covering the subject land (or a larger portion of

the subject land for properties that overlap on more than one barangay). Two

(2) notices shall be posted by the MARO, one (1) written in the English

language and the other written in the local dialect.

7.2.3. Undertake, within three (3) days from receipt of the above LUCF,

the following:

7.2.3.1. Verify the ownership and status of CARP coverage in and

around the subject land;

7.2.3.2. Inspect the applicant's billboard;

7.2.3.3. Check for and document the presence of farmers, agricultural

lessees, share tenants, farm workers, actual tillers, or legitimate

occupants;

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7.2.3.4. Prepare the MARO Certification reporting the result of all the

foregoing tasks; and

7.2.3.5. Issue the original copy of the duly signed MARO

Certification to the applicant.

7.3. In the event of inaction by the MARO, the applicant, through an affidavit

filled up by him personally, shall immediately notify the PARO of the MARO's

failure to act upon his request for issuance of the MARO Certification within the

prescribed period given in Subsection 7.2.3 above; and

7.4. Within three (3) days from receipt of the applicant's affidavit reporting the

MARO'S inaction, the PARO shall compel the MARO concerned to act upon the

request. If the MARO still refuses to act for no justifiable reason, the PARO shall,

within six (6) days from receipt of the affidavit on the MARO's inaction, perform

the duties neglected by the MARO. Meanwhile, the disciplining authority of theDAR shall, after proper investigation, impose upon said MARO the appropriate

administrative sanctions.

SECTION 8. Venue for Filing the Application for Land Use Conversion for Government

Housing Projects for Military and Police Personnel. Upon completion of the

documentary requirements in Section 7.1. of these Rules, the applicant shall submit four

(4) LUCFs [one original and three photocopies], with each folder having a table of

contents indicating the page number of all documents, including prints of photographs.

The said LUCFs, also containing all applicable documents required per Section 10 of

these Rules, shall be submitted to the Center for Land Use Policy, Planning and

Implementation (CLUPPI), located at the DAR Central Office (DARCO).

SECTION 9.Processing of Applications for Land Use Conversion for Government

Housing Project for Military and Police Personnel by the CLUPPI.

9.1. The Receiving Officer designated by the CLUPPI and assisted by a

technical staff shall:

9.1.1. Receive the four (4) LUCFs, including the set of original documents,

submitted by the applicant and record the same in the logbook designated for

the purpose;

9.1.2. Review immediately the LUCFs for completeness of the required

documents and accomplish the Pre-Evaluation Sheet;

9.1.3. Return, if the documents are incomplete/insufficient, the application

to the applicant or his representative; and

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9.1.4. Issue, if the contents of LUCFs are complete, to the applicant the

assessment on the cost of the filing fee and inspection cost based on Section

11 of these Rules.

9.2. Upon receipt of the assessments of fees, the applicant shall proceed to the

Accounting Division of the DARCO where the CLUPPI is based, for the issuanceof the corresponding Order of Payment. The applicant shall subsequently pay the

filing fee and inspection cost, and a certified photocopy of the original official

receipt (OR) and the photocopies thereof shall be included in the LUCFs to be

submitted by the applicant.

9.3. Upon payment of all required fees, the CLUPPI shall:

9.3.1. Through the Receiving Officer, write in the space prescribed in the

duly accomplished LUC Form No. 1, in all four (4) sets of the LUCF, the

amount paid for the filing fee and the Official Receipt (O.R.) number and datethereof indicating when payment was made, as only applications with the

required O.R. number shall be marked officially received and processed

accordingly;

9.3.2. Reckon the date of receipt of the LUCFs as the "Filing Date" of the

application, as the counting of the number of days for the processing the

application shall start on this date;

9.3.3. Distribute the four (4) LUCFs, within three (3) days from the Filing

Date, as follows: ADTCaI

9.3.3.1. To the CLUPPI: The LUCF containing the original

documents and one LUCF containing copies of said documents (the

receiving clerk must stamp the original LUCF with the word

"ORIGINAL"); and

9.3.3.2. To the PARO and the MARO: The CLUPPI Secretariat must

transmit the other two (2) LUCFs to the PARO and MARO. Immediate

transmittal is required so that the PARO can utilize the information

therein when acting upon any protest against the application, or when

issuing any comment that the PARO and MARO may wish to submit tothe CLUPPI in connection with the processing of the application.

9.3.4. Review and evaluate, within three (3) days from "Filing Date," the

application for land use conversion for government housing projects for

military and police personnel as to the sufficiency of information contained

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therein, and subsequently prepare a briefer which shall serve as a reference

material in the conduct of any field investigation;

9.3.5. Immediately inform the applicant, through official communication,

of any issues that need to be clarified, including, among others, inconsistent

and/or insufficient information contained in the documents submitted;

9.3.6. Issue a Notice to Conduct Ocular Inspection within three (3) days

from "Filing Date", with the notice indicating the date of the ocular inspection

which should be not later than five (5) working days from the date of the

issuance thereof;

9.3.7. Designate the members of the Ocular Inspection Team who shall

conduct the ocular inspection and, if necessary, hold a dialogue with the

farmers, agricultural lessees, share tenants, farmworkers, actual tillers, or

legitimate occupants found in the subject landholding;

9.3.8. Inform immediately the MARO and the PARO, by the fastest means

of communication possible, of the date of the ocular inspection, with

instructions to the MARO to ensure dissemination of the Notice to all

farmers, agricultural lessees, share tenants, farmworkers, actual tillers, or

legitimate occupants in the subject landholding; and

9.3.9. Ascertain the information required in the evaluation of the

application using the Ocular Inspection Report.

9.4. The Applicant shall indicate the ocular inspection date on the billboard(s) atleast three (3) days before the conduct of the ocular inspection.

9.5. The CLUPPI Ocular Inspection Team shall:

9.5.1. Conduct the ocular inspection (OCI) of the subject landholding

within ten (10) days from the "Filing Date", with the assistance of the

DARMO, DARPO, the applicant or his duly authorized representative, and

the agricultural lessees, share tenants, farmworkers, actual tillers or legitimate

occupants, if any, to validate the following:

9.5.1.1. Veracity of the information contained in the application for

land use conversion;

9.5.1.2. Description of the property(ies) applied for conversion,

including, among others, the location, terrain/topography, land cover

and dominant land use of the subject land and the surrounding areas;

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9.5.1.3. Status of the coverage under CARP of the land applied for

conversion;

9.5.1.4. Whether or not the land applied for conversion falls within

the appropriate zone in the land use plan of the city of municipality;

9.5.1.5. Existence of farmers, agricultural lessees, share tenants,

farmworkers, actual tillers, and/or legitimate occupants of the subject

land;

9.5.1.6. Whether or not the farmers, agricultural lessees, share tenants,

farmworkers, actual tillers, and/or legitimate occupants have been paid

or have agreed to the terms of the disturbance compensation due

them; and

9.5.1.7. Other pertinent information relevant and useful in decidingwhether to approve/disapprove the application for conversion. CHDTIS

The Barangay Agrarian Reform Committee (BARC) and the

Barangay Chairman shall be notified of the ocular inspection with a

request for participation, but their presence is not mandatory.

9.5.2. Prepare the OCI Report within three (3) days from the conduct of the

ocular inspection, and submit the same, together with the result of its dialogue

with concerned parties, if applicable, to the CLUPPI.

9.6. The CLUPPI Committee shall deliberate on the merits of the applicationand recommend appropriate action thereon, and if warranted in the course of the

deliberations, call the applicant and/or oppositors, if any, for clarificatory questions

in order to judiciously resolve any issue or dispute arising from the application. The

PARO may be invited to participate in the deliberations by the CLUPPI. Upon his

discretion, the PARO may submit a written comment to the CLUPPI. The

deliberation shall take place within five (5) days from the date of receipt by the

CLUPPI of the OCI Report. However, no Committee deliberation shall take

place unless all the basic Certifications under 10.9 to 10.14, and all other

pertinent documentary requirements are submitted by the applicant.

9.7. The CLUPPI Secretariat shall:

9.7.1. Within two (2) days from the date of deliberation, prepare a

recommendation for the Secretary; and

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9.7.2. Forward to the Secretary, the LUCFs that now contain the Report

and the Committee Recommendations.

9.8. The Secretary shall, upon receipt of the OCI Reports LUCFs, and

recommendations forwarded by CLUPPI, act on and decide the application.

9.9. The CLUPPI shall distribute copies of the Conversion Order or Denial to

the following:

9.9.1. Applicant or authorized representative; DACIHc

9.9.2. Oppositors, if any;

9.9.3. Concerned DAR Regional Director;

9.9.4. Concerned MARO or PARO;

9.9.5. Commissioner of the HLURB;

9.9.6. The Registry of Deeds (ROD) of the locality where the area applied

for conversion is located; and

9.9.7. Director of the Environmental Management Bureau (EMB) of the

DENR;

ARTICLE III

Documentary Requirements and Fees

SECTION 10. Documentary Requirements for Applications for Conversion of

Lands from Agricultural Use to Government Housing Project. The following

documents shall be required to be included in the LUCFs of these applications:

10.1. Official Receipt showing proof of payment of filing fee and inspection

cost;

10.2. Duly accomplished application for conversion subscribed and sworn to

before a notary public or any person authorized to administer oaths;

10.3. True copy of the Original Certificate of Title (OCT) or Transfer

Certificate of Title (TCT) of the subject land, certified by the Register of Deeds

not earlier than thirty (30) days prior to application filing date.

In case of untitled lands, the following shall be required in lieu of a title:

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10.3.1. Certification from the DENR Community Environment and Natural

Resources Officer (CENRO) that the landholding has been classified as

alienable and disposable; and

10.3.2. Certification from the DENR CENRO (for administrative

confirmation of imperfect title) or the Clerk of Court (for judicialconfirmation of imperfect title) that the titling process/proceedings has

commenced and there are no adverse claimants;

10.4. True copy of the Certificate of Title of the subject land as of 15 June 1988,

and all successor Titles until the present Title referred to in Section 7.1.3 hereof, if

applicable;

10.5. True copy of the current Tax Declaration covering the subject property;

10.6. Proof of financial and organizational capability of the developer/applicantto develop land, including the following information:

10.6.1. Statement of project cost and availability of potential funding

source(s) for the development of the proposed project;

10.6.2. Profile of the developer/applicant;

10.6.3. Most recent financial statement, not later than the year before the

Filing Date of the application, duly authenticated by a certified public

accountant; and

10.6.4. If the developer is a corporation or partnership, a copy of its

Certificate of Registration and recent General Information Sheet (GIS) for the

immediately preceding year, certified by the Securities and Exchange

Commission (SEC), or in lieu of the latter, a duly accomplished GIS sworn to

before a notary public;

10.7. Colored photographs, size 5R (five [5] inches by seven [7] inches), taken

on the landholding under sunlight. The applicant shall attach the pictures to a paper

background and the photographer who took said pictures shall sign on said paper

background to certify the authenticity of the pictures. On each background papershall be written a short description of each picture. The pictures shall consist of:

10.7.1. At least four (4) photographs taken from the center of the

landholding: one (1) facing north, one (1) facing east, one (1) facing south,

and one (1) facing west; HITEaS

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10.7.2. At least one (1) photograph per corner, taken from each corner of the

landholding's borders.

10.7.3. At least two (2) photographs each for all distinct man-made structure

existing on the land, taken from opposite angles;

10.7.4. At least two (2) photographs each of the front view of the

billboard(s) required in Section 13 hereof, with the applicant setting aside the

second copy of said billboard photograph(s) for submission to the MARO;

and

10.7.5. Sufficient number of photographs of the most conspicuous

landmarks from the nearest barangay center and leading to and from the

ingress and egress routes at the subject landholding, for the purpose of

assisting the ocular inspection team in locating the site;

10.8. Affidavit of Undertaking in a single document of the applicant stating:

10.8.1. The number and names of the farmers, agricultural lessees, share

tenants, farmworkers, actual tillers, and/or legitimate occupants in the

landholding, and if there are no such persons, a statement attesting to such

fact;

10.8.2. That the applicant has paid or shall pay disturbance compensation to

the persons mentioned in Section 10.8. above, in accordance with the

computation, and under the terms and conditions, in Section 12 hereof;

10.8.3. That the applicant has erected the required number of billboards, and

undertakes not to remove, deface, or destroy said billboards, and that he shall

repair or replace them when damaged, until after the Office of the Secretary

disposes of the application with finality; and

10.8.4. That he has not filed any claim involving the same land or issue in

any court, tribunal, or quasi-judicial agency; to the best of his knowledge, no

such other action or claim is pending therein; he has no knowledge of any

controversy or proceeding involving the status of said parcel of land or the

rights of person over its possession entitlement to fruits or as beneficiary, thedetermination of which is filed before any tribunal, court, the DAR, or any

other agency; to his own knowledge, no such action or proceeding is pending

in any court, tribunal, or -judicial agency; and should there be any similar

action or proceeding involving the property applied for conversion, which is

either pending or may have been terminated, he shall report such fact within

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five (5) days from knowledge thereof to the Office of the Secretary where his

aforesaid application has been filed.

10.9. Certification of the MARO in a single document regarding, among others,

the status of the area applied for conversion, status of surrounding areas, individuals

in the area applied for conversion, posting of notice of and use conversionapplication, and description of the property applied for conversion.

10.10. Certification from the NHA indicating that the area being applied for use is

for a government housing project for military and police personnel, and is included

in the list of priority sites identified by the housing agency.

10.11. Certification from the HLURB Regional Officer on the actual zoning or

classification of the land subject of the application on the approved comprehensive

land use plan citing: (a) the municipal or city zoning ordinance number; and (b)

resolution number and date of approval by the HLURB or the SangguniangPanlalawigan concerned, as the case may be.

10.12. Certification from the authorized Department of Agriculture (DA) official

stating, among others, the classification of the property is within the five percent

(5%) limit of the Strategic Agriculture and Fisheries Development Zone (SAFDZ)

allowed for conversion, the status of irrigation coverage of the subject property, and

whether the land has ceased to be economically feasible and sound for agricultural

purposes. As provided for inDA A.O. 2, Series of 2002, Article VI, Paragraph

"4.2" thereof, the certification inventory must include the following information: SaCIDT

10.12.1. Location and accessibility;

10.12.2. Limitations to agricultural production, such as steep slope, unstable

soil condition (landslide, etc.); inadequate land drainage; very shallow, stony,

rocky soil; very serious boulder problem;

10.12.3. Existing land use;

10.12.4. Indication of premature development or alteration of land use (with

picture);

10.12.5. Land use of adjoining area;

10.12.6. Indication of non-agricultural development; and

10.12.7. Potential for agricultural production.

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In the event the land being applied for is within the five percent (5%)

allowable limit under Section 9 ofR.A. No. 8435, the investigation report the

inventory should also include the following information:

10.12.8. Total area of the SAFDZ;

10.12.9. Allowable five percent (5%) limit;

10.12.10. Total area already approved for reclassification by the DA;

10.12.11. Balance of the five percent (5%) allowable area; and

10.12.12. Balance of the five percent (5%) allowable area if the

application is approved.

10.13. Certification from the authorized DENR official stating, among others,

whether or not the subject land is within the National Integrated Protected Areas

System (NIPAS), mossy and virgin forests, riverbanks, or swamp forests and

marshlands; within an Environmentally Critical Area (ECA), or will involve the

establishment of an Environmentally Critical Project (ECP);

10.14. Environmental Compliance Certificate (ECC) when the subject land is

within an ECA or will involve the establishment of an ECP;

10.15. Certification from the NIA attesting to the fact that the subject land is

neither irrigated nor irrigable land;

10.16. If applicable, Special Power of Attorney (SPA), when the applicant is not

the registered owner;

10.17. Notarized Secretary's Certificate of a corporate/cooperative Board

Resolution authorizing the representative to apply for conversion, when the

applicant is a corporation or cooperative;

10.18. Concurrence letter of the mortgagee or of the individual or entity in whose

favor the encumbrance was constituted, when the property is encumbered;

10.19. PARO Certification attesting that the applicant-landowner acquired the

subject land from a landed-estate or under the Voluntary Land Transfer/Direct

Payment Scheme (VLT/DPS), and that he has already fully paid his obligation

thereunder, when the applicant-landowner is a beneficiary of the agrarian reform

program;

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10.20. Vicinity map and a lot plan prepared by a duly licensed geodetic engineer

indicating the lots being applied for and their technical descriptions, name of

owner/s, lot number, and area, with the map highlighting the specific area applied

for conversion if the application covers less than the total lot area; aITECA

10.21. Directional sketch map showing the orientation of the subject property inrelation to adjoining lands and the nearest provincial and/or national and/or feeder

roads, to facilitate the determination of the location of the property for the purpose

of ocular inspection, with the map indicating the existing infrastructure and/or

improvements, including any house or tillage thereon of any legitimate occupant

therein, landmarks within a one (1) kilometer radius, and owners of adjacent

properties, and it being understood that the same need not be required to be drawn

to scale;

10.22. Map of the development plan, where the blueprint copy of the development

plan certified by the HLURB as the basis for its certification that the projectconforms with the minimum standards ofBatas Pambansa Bilang 220should be

submitted; and

10.23. Topographic Map, if the subject property is within an upland, hilly, or

mountainous area.

As a general rule, the applicant shall submit all the foregoing applicable requirements

from Sections 10.1 to 10.21 hereof at the time of the Filing Date. However, for

applications involving government housing projects for military and police personnel

under O.P.A.O No. 9, Series of 2011, the submission of the requirements mentioned in

Sections 10.9 to 10.14 hereof can be done on a later date, which shall not be later than

five (5) days prior to the scheduled date of the deliberation of the CLUPPI. Consequently,

the processing of the application shall follow the alternative timetable in Section 9 of this

Order, subject to full compliance with or completed submission of certifications and

other pertinent documentary requirements prior to the final disposition of the application

for conversion. No Order for Approval or Disapproval shall be issued when the

documentation is incomplete. ESCTaA

The various Land Use Conversion (LUC) forms and papers pertaining to application

forms, checklists, certifications, notices, pre-evaluation sheets, returns, assessments,

affidavits, pre-evaluation sheets, briefers, reports, and the like, referred to in these Rulesshall be in accordance with the forms therefore prescribed inAdministrative Order (A.O.)

No. 1, Series of 2002.

SECTION 11. Filing Fees and Inspection Cost.
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11.1. Depending on the area of the land being applied for conversion, the filing

fee shall be:

11.1.1. One thousand pesos (Php1,000.00) for applications involving lands

with an area less than or equal to five (5) hectares; or

11.1.2. Two thousand pesos (Php2,000.00) for applications involving lands

with an area larger than five (5) hectares.

11.2. Inspection Cost shall be:

11.2.1. Ten thousand (10,000.00) pesos if the subject landholding is within

the main island of Luzon (except Bicol peninsula);

11.2.2. Fifteen thousand (15,000.00) pesos if the subject landholding is

within Regions I to IV but is not located within the main island of Luzon;

11.2.3. Fifteen thousand (15,000.00) pesos if the subject landholding is in

Bicol Peninsula or Visayas group of islands; or

11.2.4. Twenty thousand (20,000.00) pesos if the subject landholding is in

the Mindanao group of islands.

SECTION 12. Disturbance Compensation.

12.1. The applicant and/or landowner and/or developer shall pay disturbance

compensation in cash or kind or through a combination of cash and kind to thefarmers, agricultural lessees, share tenants, farmworkers, actual tillers, and/or

legitimate occupants affected by the conversion, in such amounts or under such

terms as the parties may mutually agree upon.

12.2. The amount of disturbance compensation shall not be less than five (5)

times the average of the gross harvests on the target landholding during the last five

(5) preceding calendar years, pursuant to Section 36 ofR.A. No. 3844, as amended

by Section 7 ofR.A. No. 6389.

12.3. Compensation in kind may consist of some or all or a combination ofhousing, homelots, employment, and/or other benefits. The DAR shall approve the

terms of any agreement for the payment of disturbance compensation and monitor

compliance therewith. In no case shall compliance with the terms and conditions

thereof extend beyond sixty (60) days from the date of approval of the application

for conversion. TCDcSE
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12.4. If the parties fail to agree on the amount of disturbance compensation, or

raise an issue questioning the lease or tenancy relationship or any other prejudicial

issue that tends to justify non-payment of disturbance compensation, either or both

parties may refer the issue to the Provincial Agrarian Reform Adjudicator

(PARAD) for resolution. While the case is pending before the latter, the

landowner(s)/applicant(s) shall not evict said farmers, agricultural lessees, sharetenants, farmworkers, actual tillers, or legitimate occupants, until such time when

the PARAD resolves the prejudicial issue(s) with finality.

12.5. The applicant shall furnish the CLUPPI with proof of payment of

disturbance compensation within five (5) days from receipt of payment by the

recipient(s).

SECTION 13. Public Notice.The applicant shall post in a conspicuous place(s)

within the subject property, a public notice contained in a billboard made of strong

weather-resistant material such as tarpaulin or other similar durable material, measuring1.22 meters by 2.44 meters (4 feet by 8 feet). If the landholding has an area of more than

twenty (20) hectares, the applicant shall erect one (1) billboard for every twenty (20)

hectares, on strategic and visible points in the landholding, preferably along a road. The

billboard shall be written in the local dialect and shall display all the information

mentioned below, to wit:

13.1. Statement that the applicant is proposing to convert the subject landholding

from agricultural to non-agricultural use;

13.2. Complete name of the landowner(s) and applicant(s) and developer(s);

13.3. Total area and exact location of the property subject of the conversion

proposal;

13.4. Filing date of the application for conversion (the date when the CLUPPI

received the application);

13.5. Date of posting of the billboard;

13.6. Schedule of ocular inspection (OCI) which shall be left blank and which the

applicant shall fill-up after the CLUPPI issues the Notice to Conduct OcularInspection, with the notice indicating the date of the OCI which should be not later

than three (3) days from the date of the issuance thereof;

13.7. Deadline for filing of protest (not later than thirty (30) days from the

posting of the billboard or not later than fifteen (15) days from the conduct of the

ocular inspection);

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13.8. Address of the CLUPPI and PARO where oppositors may formally file

their protest;

13.9. Address of the Office of the Secretary as the approving authority; and

13.10. Date of approval or denial of the application, which shall be left blank, andwhich the applicant shall fill up upon approval or denial of the application. EHScCA

SECTION 14. Performance Bond.Within five (5) days from receipt of a copy of

the Conversion Order, the applicant shall post a performance bond in either of the

following forms:

14.1. Cash or manager's/cashier's check equivalent to at least two point five

percent (2.5%) of the total zonal value of the land per latest issuance of the Bureau

of Internal Revenue (BIR); or

14.2. GSIS surety bond equivalent to at least fifteen percent (15%) of the total

zonal value of the land per latest issuance of the BIR, indicating the following

minimum conditions:

14.2.1. The bond is callable on demand;

14.2.2. A photocopy of the approval Conversion Order is attached and

forms part of the bond;

14.2.3. The DAR shall forfeit the bond in favor of the Agrarian Reform

Fund when it finds the applicant in default of his obligation to completedevelopment of the land and/or comply with any of the conditions in the

Conversion Order; and

14.2.4. The validity of the bond shall be equivalent to the prescribed period

of development of the area under the Conversion Order.

14.3. For the first two (2) years from the effectivity of this A.O., the rate of the

bond through cash or manager's/cashier's check that must be posted shall be

equivalent to at least point five percent (0.5%) of the total zonal value of the land

per latest issuance of the BIR. During the same period, the rate of the GSIS suretybond that must be posted shall be equivalent to at least five percent (5%) of the total

zonal value of the land per latest issuance of the BIR. aCSDIc

ARTICLE IV

Final Provisions

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SECTION 15. Effect of Pending Applications.This Administrative Order shall

apply prospectively to all applications for land use conversion in favor of government

housing projects in accordance with the provisions of O.P.A.O. No. 9, Series of 2011.

Existing rules shall govern all pending applications for land use conversion save those on

criminal penalties pursuant to Section 74 ofR.A. No. 6657, as amended.

SECTION 16. Applicability of Rules on Conversion.The Rules on Conversion

shall apply suppletorily to this A.O., including, among others, the required conditions of

any and all conversion orders.

SECTION 17. Repealing Clause.All orders, circulars, issuances, or portions

thereof inconsistent herewith are hereby revoked, cancelled, or modified, as the case may

be.

SECTION 18. Separability Clause.Any judicial pronouncement declaring as

unconstitutional any provision or portion of this A.O. shall not affect the validity of theother provisions herein.

SECTION 19. Effectivity Clause.This A.O. shall take effect ten (10) days after

complete publication in at least two (2) newspapers with nationwide circulation.

Diliman, Quezon City, July 19, 2011.

Published in The Philippine Star and The Manila Bulletin on July 25, 2011.

ATTACHMENT

CERTIFICATION

This is to certify that DAR Administrative Order No. 2, Series of 2011 entitled

"RULES ON THE CONVERSION OF AGRICULTURAL LANDS FOR

GOVERNMENT HOUSING PROJECTS INTENDED FOR ARMED FORCES OF

THE PHILIPPINES AND PHILIPPINE NATIONAL POLICE PERSONNEL

PURSUANT TO OFFICE OF THE PRESIDENT ADMINISTRATIVE ORDER NO.

9, SERIES OF 2011" was published last Saturday, 23 July 2011 at Philippine Star and

Manila Bulletin newspapers. ACaEcH

Issued this 25th day of July 2011 for whatever purpose it may serve.

(SGD.) HUGO D. YONZON III

Public Affairs Staff Director
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a.o. 2, s. 2011

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