Title
Tondo Foreshore Land Tenure System
Law
Presidential Decree No. 814
Decision Date
Oct 17, 1975
Presidential Decree No. 814 establishes a land tenure system for the Tondo Foreshore and Dagat-Dagatan Urban Development Project, aiming to improve living conditions and resolve the squatter and slum problem in the area through regulated land ownership and disposition.
A

Prescribed Land Tenure System

  • Two modes of residential land ownership and disposition apply:
    • Freehold with restrictions: Applies only to titled lots and claims with "vested rights" such as final deeds of sale or agreements to sell.
    • Leasehold with or without option to purchase: Applies to untitled, vacant, unclaimed lands without vested rights.
  • Owners with vested rights under freehold may opt for leasehold with option to purchase.

Establishment of Citizens' Committee

  • Each barangay in the Project Area will have a Citizens' Committee of five members: the Barangay Chairman (ex officio) and four elected members serving one-year terms.
  • The Committee processes requests for transfer of residential land rights and sub-letting, submitting recommendations to the Authority.
  • The Committee elects its own Chairman.
  • The Authority, with relevant government agencies, sets rules for barangay elections and Committee operations.

Conditions Governing Freehold Ownership

  • Land under freehold cannot be transferred, alienated, or disposed of except by hereditary succession, without meeting criteria set by the Authority (such as income and multiple ownership limits).
  • Transfers must be approved by the Citizens' Committee and the Authority.
  • Use, occupancy, and development of freehold land are subject to the Authority’s regulations per the approved development plan.
  • A development cost fee is assessed on freehold lands, amortized perpetually.

Conditions Governing Leasehold with/without Option to Purchase

  • Leases have an initial term of 25 years, renewable for another 25 years.
  • Lessees may purchase the land after five years of continuous occupancy at market value assessed upon application.
  • Lease payments made up to purchase are credited against the purchase price.
  • Upon full payment, the lessee acquires freehold ownership with restrictions.
  • Lease amounts cover development costs, with possible gradual increases.
  • Lease transfers require Citizens' Committee approval and Authority review; transfer price is determined by lessee and transferee.
  • Procedures for leasehold without option to purchase are prescribed by the Authority.

Sub-letting Regulations

  • Sub-letting of dwelling units and structures requires recommendations from the Citizens’ Committee and approval from the Authority.
  • The Authority shall not unreasonably withhold approvals for qualified transferees.

Commercial and Industrial Land Disposition

  • Such lands may be sold or leased.
  • The Authority establishes terms and conditions for disposal.

Real Property Tax Obligations

  • Both lessees and freehold title holders must pay normal real property taxes to local government units.
  • Payment entitles them to standard municipal services.

Implementation and Administrative Authority

  • The National Housing Authority is vested with the power to implement and administer the land tenure system within the Project.

Repealing Clause

  • Existing laws, decrees, executive orders, ordinances, and regulations inconsistent with this Decree are repealed, amended, or modified accordingly.

Separability Clause

  • Declaring any provision unconstitutional or invalid does not affect the validity of other provisions, which remain in full force and effect.

Effectivity

  • This Decree took effect immediately upon promulgation on October 17, 1975.

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