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.