Title
Guidelines for non-negotiable land conversion
Law
Administrative Order No. 363
Decision Date
Oct 9, 1997
Administrative Order No. 363 establishes guidelines for protecting non-negotiable areas and monitoring compliance with land use policies in the Philippines, with a focus on rural development, agrarian reform, and the preservation of prime agricultural lands.

Non-Negotiable and Highly Restricted Areas for Conversion

  • Non-negotiable areas include:
    • Protected areas under NIPAS like watersheds and aquifer recharge areas.
    • All irrigated lands and those programmed for irrigation rehabilitation.
    • Lands under irrigation projects with firm funding commitments.
  • Highly restricted areas include:
    • Irrigable lands without firm irrigation funding.
    • Agro-industrial croplands supporting economic viability.
    • Highlands above 500m suitable for semi-temperate crops.
    • Lands under agrarian reform acquisition or subject to perfected voluntary land transfer agreements.
    • Environmentally critical areas under DENR’s jurisdiction.
  • Conversion in highly restricted areas requires social benefit cost analysis and compliance with environmental impact assessments.

Conversion Exceptions and Benefits for Affected Farmers

  • Conversion of priority agri-industrial sites, tourism development, and socialized housing may be allowed with required environmental compliance.
  • Farmers affected by conversion must receive sufficient disturbance compensation and support for livelihood transition including capital, training, relocation, and employment priority.
  • Investment options such as joint ventures between developers and stakeholders are encouraged.

Application Procedures for Land Conversion

  • Land use reclassification by LGUs requires an approved Comprehensive Land Use Plan and certifications from:
    • HLURB on total zoned agricultural land.
    • NIA confirming non-inclusion in protected irrigation areas.
    • DAR verifying no agrarian reform coverage.
    • DENR confirming alienable/disposable land status.
  • DAR applications for conversion must have certifications from DA (viability and restriction status), DENR (environmental status and ECC where applicable), NIA, and HLURB (reclassification approval).
  • Appeals from DAR decisions go to the Office of the President.
  • Replacement of irrigated lands is required when conversion affects them.

Definitions of Key Terms

  • Agricultural Lands: Lands devoted to farming, excluding mineral, forest, residential, commercial, and industrial classifications.
  • Aquifer Recharge Areas: Sources replenishing groundwater.
  • Environmentally Critical Areas: Legally declared natural parks, wildlife habitats, historic sites, endangered species habitats, critical slopes, and vulnerable zones.
  • Highly Restricted Areas: Productive agricultural lands with efficient crop-growing potential.
  • Land Use: Manner of land allocation, development, and management.
  • Land Use Conversion: Changing agricultural land for non-agricultural purposes.
  • Network of Protected Areas for Agriculture: Land reserved for farming, including irrigated and suitable croplands.
  • Prime Agricultural Lands: Lands yielding optimum, sustainable agricultural production with minimal inputs.
  • Socialized Housing: Government or private sector housing for low-income and homeless beneficiaries.
  • Special Economic Zones: Designated areas for specialized industrial, commercial, or tourism development.
  • Zoning and Zoning Ordinance: Division of land into functional zones with specific use regulations.

Monitoring Compliance with Section 20 of RA 7160

  • Cities and municipalities must adhere to Joint HLURB, DAR, DA, and DILG guidelines for agricultural land reclassification.

Penalties and Sanctions

  • Prohibited acts include:
    • Conversion attempts to evade agrarian reform law.
    • Illegal sale, transfer, or occupation of protected lands.
    • Unauthorized construction and business in protected areas.
    • Failure to comply with housing project undertakings.
    • Misrepresentation in conversion applications.
    • Unapproved conversion activities.
    • Operating without environmental compliance certificates.
    • Violations of environmental impact requirements.

Transitory Provisions and Agency Responsibilities

  • Government agencies required to harmonize procedures within 60 days.
  • Department of Agriculture to update protected agricultural land maps, set criteria for agricultural viability, and develop social benefit cost analyses.
  • DENR to prepare and validate protected area maps and identify environmentally critical zones.
  • DAR to identify lands under agrarian reform processes.
  • HLURB to design monitoring systems for conversion.
  • DILG to enforce LGU compliance for land use plans.
  • DA Network remains the guide pending presidential approval of protected areas delineation.

Repealing and Effectivity Clauses

  • Inconsistent issuances repealed or modified.
  • The Administrative Order takes effect ten days after publication in two national newspapers.

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