Law Summary
Declaration of Policy
- Ensures prompt and just compensation for private property owners when their land is acquired for national government infrastructure projects.
- Upholds the constitutional provision that private property shall not be taken without just compensation.
Definition and Scope of National Government Projects
- Covers all national government infrastructure projects, public service facilities, engineering works, and service contracts.
- Includes projects by government-owned and controlled corporations and projects under the Build-Operate-and-Transfer Law.
- Encompasses related activities such as site acquisition, construction, operation, maintenance, and improvements.
- Local Government Units (LGUs) may adopt this Act for local infrastructure projects subject to the Local Government Code.
Modes of Acquiring Real Property
- Acquisition may be through donation, negotiated sale, expropriation, or other lawful means.
- Special provisions apply to lands under the Public Land Act, differentiating original patent holders from other owners.
- Donations or similar acquisitions can be made from government-owned or controlled corporations.
- Government may access and use subsurface or subterranean portions of private lands for infrastructure more than 50 meters below surface.
Rules on Negotiated Sale
- Compensation offered shall include:
- Current market value of the land.
- Replacement cost of structures and improvements.
- Current market value of crops and trees.
- Property valuation may be done by government financial institutions or accredited independent appraisers.
- Property owners have 30 days to accept the offer; rejection or failure to respond leads to expropriation.
- Special protections for certain occupants who do not own the land but meet specific criteria.
- Government pays capital gains tax, documentary stamp tax, transfer tax, and registration fees; owners pay unpaid real property tax.
- Deed of absolute sale must be executed including submission of necessary ownership and tax documents.
- Partial payments are made upon deed execution, with balances paid upon property clearance and title transfer.
Expropriation Proceedings
- Initiated by implementing agency through legal counsel before the proper court.
- Agency must deposit estimated value covering land, improvements, crops, and trees to the court.
- Court issues writ of possession ex parte, allowing agency to take possession and proceed with project.
- Procedures for cases where ownership is unknown, contested, or deceased owners.
- City or municipal assessor and BIR must provide land classification and zonal valuation within 60 days if not existing or outdated.
- Courts determine just compensation within 60 days if contested; differences paid after final decision.
- Implementing agency bears documentary taxes; owner pays capital gains tax and unpaid real property tax.
Standards for Property Valuation
- Factors include:
- Property classification and suitable use.
- Development cost for improvements.
- Owner’s declared value.
- Selling price of similar lands nearby.
- Disturbance compensation for removal of improvements.
- Land size, shape, location, tax declaration, and zonal valuation.
- Evidence such as ocular findings and documents.
- Ensuring owners can acquire similar property and rehabilitate themselves.
- Implementing rules will define detailed valuation standards and terms of reference for appraisers.
Environmental Considerations
- Implementing agencies must consider ecological and environmental impacts.
- Compliance with environmental laws and land-use ordinances required before project implementation.
Relocation of Informal Settlers
- Government agencies (HUDCC, NHA) and LGUs coordinate to develop resettlement sites with necessary services.
- LGUs administer resettlement when applicable.
- Courts may issue writs of demolition if informal settlers refuse or fail to clear expropriated lands.
- Procedures under the Urban Development and Housing Act must be observed.
Appropriations for Right-of-Way Acquisition
- Government must allocate funds in advance for acquisition expenses including surveys, appraisals, compensation, resettlement development, and administrative costs.
- In Public-Private Partnership (PPP) projects, proponents may advance or finance right-of-way costs with reimbursement or recovery mechanisms.
Regulation of Developments within Declared Right-of-Way
- No development or issuance of permits contrary to project plans within right-of-way allowed for two years from notice of taking, unless authorized by implementing agency head.
Sanctions
- Violations subject officials and employees to administrative, civil, or criminal penalties including suspension or dismissal and forfeiture of benefits.
Implementing Rules and Regulations (IRR)
- A committee chaired by the Secretary of Public Works and Highways, including key government officials, shall prepare IRR within 60 days of the Act’s approval.
Transitory Provisions
- The Act applies to all right-of-way transactions except those already satisfactorily concluded with signed agreements before its effectivity.
Separability Clause
- If any provision is declared unconstitutional or invalid, other provisions remain in force.
Repealing Clause
- Repeals Republic Act No. 8974 and other inconsistent laws, decrees, rules, or regulations.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.