Title
Acquisition of Property for Govt Projects
Law
Republic Act No. 8974
Decision Date
Nov 7, 2000
Private property cannot be taken for public use without just compensation, as declared by Republic Act No. 8974, which aims to ensure prompt payment of compensation to owners of real property acquired for national government infrastructure projects.

Definition of National Government Projects

  • National government projects include infrastructure, engineering works, and service contracts.
  • Covers projects by government-owned and -controlled corporations.
  • Includes those under the Build-Operate-and-Transfer Law and related activities such as site acquisition, construction, operation, maintenance, and repair.
  • Applies regardless of funding source.

Modes of Acquiring Real Property

  • Government can acquire property by donation, negotiated sale, expropriation, or other lawful means.

Guidelines for Expropriation Proceedings

  • Expropriation initiated by the implementing agency through court complaint with due notice to the owner.
  • Upon filing, immediate payment to owner of:
    1. 100% of the property's value based on BIR's current zonal valuation.
    2. Value of improvements or structures as per Section 7.
  • BIR must provide zonal valuations within 60 days in areas lacking them.
  • In urgent cases without valuations, agency pays proffered value considering Section 5 standards.
  • Court issues possession order after payment and certification of fund availability.
  • If owner contests value, court must decide just compensation within 60 days.
  • Difference paid to owner when court decision is final.

Standards for Assessment of Value

  • Court considers factors such as:
    • Property classification and suitable use.
    • Developmental costs.
    • Owner-declared value.
    • Selling price of similar nearby properties.
    • Disturbance compensation for improvements removal.
    • Size, shape, location, tax declaration, zonal valuation.
    • Evidence from ocular inspection, documents.
    • Ability of owner to reacquire similar property and rehabilitation.

Guidelines for Negotiated Sale

  • If parties agree on sale, Section 5 standards determine fair market value.
  • Sale price subject to review and approval by agency head.

Valuation of Improvements and/or Structures

  • Department of Public Works and Highways and implementing agencies, in coordination with LGUs, must adopt rules for equitable valuation within 60 days of the Act's approval.

Ecological and Environmental Concerns

  • Agencies must consider ecological and environmental impacts before project commencement.
  • Compliance with environmental laws, land use ordinances, and Local Government Code provisions required.

Squatter Relocation

  • National Housing Authority with LGUs to develop relocation sites with utilities for squatters displaced by projects.
  • LGUs to manage relocation sites when applicable.
  • Courts to issue writs of demolition for illegal structures on expropriated land.
  • Implementing agencies must follow procedures under the Urban Development and Housing Act.
  • Funding from General Appropriations Act and implementing agencies' project funds.

Appropriations for Acquisition in Advance

  • Government to allocate funds in advance to enable property acquisition prior to project implementation.

Sanctions

  • Violations subject government officials/employees to administrative, civil, and criminal penalties including suspension, dismissal, and forfeiture of benefits.

Rules and Regulations

  • Committee headed by DPWH Secretary with other officials and league presidents to draft rules within 60 days of approval.

Separability Clause

  • Unconstitutional or invalid provisions do not affect the remaining valid parts of the Act.

Repealing Clause

  • Laws or rules inconsistent with this Act are repealed or amended accordingly.

Effectivity Clause

  • The Act takes effect 15 days after publication in two newspapers of general circulation.

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