Designation of Burgundy Tower as IT Center

Legal basis; cited statutes and directives

The Order is issued pursuant to Sections 65 and 49 of Republic Act No. 6657 (Comprehensive Agrarian Reform Law of 1988).
It is also issued pursuant to Sections 4 (j) and 5 (l) of Executive Order No. 129-A (Reorganization Act of the Department of Agrarian Reform).
The Order is issued in compliance with the President’s directive on December 29, 1998.
The Order further relies on Republic Act No. 8435 (Agriculture and Fisheries Modernization Act).
The Order also implements and references governing framework on land use and conversion, including EO 124 (s. 1993), EO 184 (s. 1994), RA 7916, and RA 7160 within its operational rules.

Policy statement; purposes of regulation

The conversion of agricultural lands to non-agricultural uses is strictly regulated.
Conversion is allowed only when conditions in RA 6657 and/or RA 8435 are present (Section 1).
The State must preserve prime agricultural lands to ensure food security, including sufficiency in staple food (rice and corn) (Section 1).
The State must rationally and sustainably use resources to maximize agricultural productivity, promote efficiency and equity, and accelerate modernization (Section 1).

Defined terms; core concepts used

Agricultural Lands are lands devoted to or suitable for cultivation, planting, tree growing, livestock/poultry/fish/aquaculture production, and related farm activities, excluding lands classified as mineral land, forest or timber, or national park, and excluding lands already reclassified for non-agricultural uses before June 15, 1988 (Section 2).
Areas Non-Negotiable for Conversion are agricultural lands enumerated in Section 4 (Section 2).
Areas Highly Restricted from Conversion are agricultural lands enumerated in Section 5, requiring additional requirements and the Secretary’s approval regardless of the area (Section 2).
Areas Non-Negotiable for Conversion applications are not advanced procedurally (“shall not be given due course”) (Section 4).
Comprehensive Land Use Plan is a document with maps and illustrations showing desired population distribution patterns and future allocation of land to land-using activities, identifying allocation, character, extent of land resources, and the process and criteria used (Section 2).
Conversion Moratorium is the RA 8435 moratorium prohibiting conversion of specified irrigated/irrigable/high-value-crop lands in SAFDZ for the period 10 February 1998 to 9 February 2003, as described in the Order (Section 2).
Illegal Conversion covers conversion intended to avoid RA 6657 coverage and dispossess tenant farmers, and certain post-RA 6657 changes outside urban centers/city limits, per Section 73 (c) and (e) of RA 6657 (Section 2).
Premature Conversion of Agricultural Land is undertaking development activities modifying agricultural land physical characteristics to suit non-agricultural purposes without an approved DAR conversion order (Section 2).
Unauthorized Conversion is changing use in a manner exempting land from CARP coverage without a DAR conversion order, or using land otherwise than allowed by the DAR conversion order (Section 2).
ECAs (Environmentally Critical Areas) are ecologically/socially/geologically sensitive areas declared by law, including enumerated categories such as national parks, watershed reserves, sanctuaries, tourist spots, habitats of endangered species, historic/archeological/scientific sites, indigenous territories, disaster-hit areas, critical slopes, prime agricultural lands, recharged aquifers, domestic-supply fisheries/wildlife-supporting water bodies, mangrove areas with critical functions or livelihood dependence, coral reefs, mossy/virgin forests, river banks, and swamp forests/marshlands (Section 2).
NPAAAD and NIPAS are defined as agricultural/protected area systems and classifications used in determining conversion limits and environmental constraints (Section 2).
SAFDZ (Strategic Agriculture and Fisheries Development Zones) are areas within NPAAAD identified for production, agro-processing, and marketing for agriculture/fisheries modernization (Section 2).

Scope: what lands and conversions are covered

The Rules apply to agricultural lands to be:
- Converted to residential, commercial, industrial, institutional, and other non-agricultural purposes (Section 3(a)).
- Devoted to another type of agricultural activity such that the land is exempt from CARP coverage (e.g., livestock, poultry, fishpond) (Section 3(b)).
- Converted to non-agricultural use other than previously authorized (Section 3(c)).
- Converted that were reclassified to non-agricultural uses on or after June 15, 1988 under Section 20 of RA 7160 and other pertinent laws, with conversion required through the Rules’ framework (Section 3(d)).
Conversion limitations apply based on classification under Sections 4, 5, and 7 and related SAFDZ/NIPAS/ECAs frameworks (Sections 4-7).
Conversion approvals are governed by criteria in Section 8 and procedures in Sections 11-17 and related sections on protests, bonds, approvals, and appeals (Articles III-VI).

Conversion limits and approval criteria

Non-negotiable areas (no conversion): Section 4 prohibits conversion of agricultural lands inside NIPAS protected areas (including watershed and recharged aquifers) as determined by DENR.
Non-negotiable areas (no conversion): Section 4 prohibits conversion of:
- All irrigated lands (as delineated by DA and/or NIA) where water supports rice/other crops.
- Irrigated lands where water is not available for rice/other crop production but are within areas programmed for irrigation rehabilitation by DA and/or NIA.
Non-negotiable areas (no conversion): Section 4 prohibits conversion of all irrigable lands already covered by irrigation projects with firm funding commitments as delineated by DA and/or NIA.
Non-negotiable areas (no conversion): Section 4 prohibits conversion of all agricultural lands with irrigation facilities operated by private organizations.
If the land involves any area non-negotiable, the DAR must not proceed with the application (“shall not be given due course”) (Section 4).
Highly restricted areas: Section 5 classifies as highly restricted:
- Irrigable lands not covered by irrigation projects with firm funding commitments.
- Agro-industrial croplands or lands planted to industrial crops supporting the viability of existing agricultural infrastructure and agro-based enterprises.
- Highlands/elevations of 500 meters or above suitable for semi-temperate and usually high-value crops.
- Lands with notice of land valuation/acquisition, or subject of a perfected agreement under CARP’s VLT/DPS scheme.
- ECAs determined by DENR in accordance with law.
For highly restricted applications, the application must include a project feasibility study, and environmental compliance certificate (ECC) if within ECAs (Section 5).
Applications in highly restricted areas are deliberated by the PARC Land Use Technical Committee (PLUTC) and are approved by the Secretary regardless of the area (Section 5).
Priority Development Areas are recognized under Section 6 (including specific sites in RAICs/RICs, tourism development areas, socialized housing sites for agricultural lands, sites intended for socialized housing under EO 184, and agricultural areas intended for ECOZONE projects under RA 7916).
For priority development areas, an ECC is not a pre-condition to approval; it becomes part of the conditions where applicable (Section 6).
SAFDZ conversion moratorium (RA 8435):
- Conversion of specified lands within SAFDZ is subject to moratorium for five (5) years from 10 February 1998 to 9 February 2003 (Section 7(a)).
- During the moratorium, conversion may be allowed for only 5% of those SAFDZ lands, if conditions and compliance with existing laws/rules/regulations are met (Section 7(b)).
- The maximum 5% equivalent total convertible area is jointly determined by DA and DAR upon recommendation of regional/national SAFDZ committees (Section 7(c)).
- After the moratorium, conversion may be allowed case-by-case subject to applicable land use conversion laws/rules/regulations (Section 7(d)).

Who may apply; documentary and filing rules

Applicants may include:
- Owners of private agricultural lands or persons duly authorized by landowners (Section 9(a)).
- Beneficiaries of agrarian reform after five (5) years from award, reckoned from issuance of CLOA, who have fully paid obligations and are qualified under the Rules, or authorized persons (Section 9(b)).
- Government agencies (including GOCCs) and LGUs owning agricultural land as patrimonial property (Section 9(c)).
The standard application documents include:
- A duly accomplished application for conversion subscribed and sworn before a notary public (Section 10(a)(1)).
- A special power of attorney if not the registered owner, or a board resolution authorizing applicant if the owner is a corporation (Section 10(a)(2)).
- True copy of OCT/TCT certified by the Register of Deeds no later than thirty (30) days prior to filing; for untitled land:
  - DENR CENRO certification that the landholding is classified as alienable and disposable; and
  - DENR CENRO (administrative confirmation of imperfect title) or the Clerk of Court (judicial confirmation of imperfect title) certification that titling has commenced and there are no adverse claimants (Section 10(a)(3)).
- Recent 5R photographs certified by photographer/applicant (Section 10(a)(4)).
- Socio-economic benefit cost study including detailed site development plan and work and financial plan (Section 10(a)(5)).
- Proof of financial and organizational capability, including developer profile, financial statement authenticated by a CPA, and articles of incorporation/partnership; plus additional requirements for socialized housing LGU and for other government agencies as specified (Section 10(a)(6)).
- List of affected tenants/farmworkers/bona fide occupants and proof of payment or agreement to pay disturbance compensation, attested to by the MARO; bona fide occupants are those authorized by the landowner to stay in the property (Section 10(a)(7)).
- Zoning/classification certification from HLURB Regional Officer or Deputized Zoning Administrator, stating actual zoning based on the approved Comprehensive Land Use Plan with the relevant municipal/city zoning ordinance and approval date (Section 10(a)(8)).
- Certification from authorized DA official stating NPAAAD classification, convertibility status (non-negotiable or highly restricted), and irrigation coverage/suitability for agriculture (Section 10(a)(9)).
- Certification from DENR Regional Executive Director that the area is not within NIPAS, not within ECAs, and will not involve establishment of an Environmentally Critical Project (ECP) (Section 10(a)(10)).
- Official receipt showing proof of payment of filing fee (Section 10(a)(11)).
Special requirements apply depending on applicant and land classification:
- If applicant is a beneficiary of agrarian reform:
  - PARO certification that at least five (5) years have lapsed since land award (Section 10(b)(1)).
  - LBP certification of full payment; for landed-estate or VLT/DPS lands, a PARO certification that the same has been fully paid by the applicant replaces LBP certification (Section 10(b)(2)).
  - Joint venture agreement or business arrangement on land use between EP/CLOA holders and the developer (Section 10(b)(3)).
- If application involves priority development areas:
  - Endorsement from concerned government agencies; an endorsement from HLURB is needed if the project is for socialized housing; a PEZA board resolution is required if the area is intended for ECOZONE projects (Section 10(b)(4)).
- If the area is highly restricted: a project feasibility study (Section 10(b)(5)).
- If application involves ECAs or ECPs: an Environmental Compliance Certificate (ECC) (Section 10(b)(6)).

Fees, bonds, and notice posting

Filing fees accrue to the Agrarian Reform Fund under Section 1 of RA 8532 (Section 12).
Filing fee rates are:
- Five (5) hectares or below: fixed fee PHP 1,000.00 and inspection fee PHP 10,000.00 (Section 12(a)).
- More than five (5) hectares: fixed fee PHP 2,000.00 and inspection fee PHP 10,000.00 (Section 12(a)).
Applications must be filed in three (3) sets under oath (including originals) with required documents (Section 11(c)).
Incomplete applications are not accepted; complete applications are accepted subject to payment and bond posting requirements (Section 11(d)).
Cash bond:
- The cash bond must be posted upon filing equivalent to 2.5% of the total zonal value of the land (Section 15(b)).
- It is refundable upon issuance of an order of conversion or convertible into a performance bond at applicant’s option (Section 15(b)).
- It is forfeited if actual conversion activities occur prior to approval, without prejudice to criminal charges (Section 15(b)).
Performance bond:
- Must be posted within five (5) days from issuance of the conversion order (Section 15(c)).
- Acceptable forms and equivalents:
  - Cash/manager’s check/cashier’s check/irrevocable letter of credit/bank draft equivalent to 2.5% of total zonal value (Section 15(c)(i)).
  - Bank guarantee equivalent to 5% of total zonal value (Section 15(c)(ii)).
  - Surety equivalent to 15% of total zonal value (Section 15(c)(iii)).
- The performance bond is in favor of DAR and is co-terminous with final project completion; it is forfeited for violation of conditions (Section 15(c)).
Notice of Application:
- Upon receipt, the Regional Office/Central Office prepares the notice the same day and transmits to the DAR Municipal Office for posting (Section 13(a)(1)).
- The MARO posts within two (2) days the notice in two (2) conspicuous places, in barangay(s) where property is located, and on the property itself for fifteen (15) days (Section 13(a)(2)).
- The MARO issues a Certificate of Posting within one (1) day from lapse of the posting period (Section 13(a)(3)).

Processing timelines and field investigation

A briefer for field investigation/ocular inspection must be prepared within two (2) days from receipt of the application (Section 13(b)(1)).
Field investigation and ocular inspection occur on the eighth day from posting of the notice (Section 13(b)(2)).
The designated team verifies among others:
- Veracity of application information.
- CARP coverage.
- Land falls within the appropriate zone in the land use plan.
- Existence of tenants/farmworkers/bona fide occupants and whether they have been paid or agreed to disturbance compensation terms.
- Other information relevant to decision (Section 13(b)(3)).
Investigation must be completed within seven (7) days from start, and the report submitted within three (3) days from completion (Section 13(b)(4)).
Deliberation:
- The Regional/Central Office deliberates on the twentieth day from posting, after inspection, and may call applicant and/or oppositors for clarification (Section 13(c)(1)).
- The recommendation is forwarded to the Regional Director, Undersecretary, or Secretary within ten (10) days from deliberation (Section 13(c)(2)).
- The approving authority resolves within ten (10) days from submission of the recommendation and furnishes copies to applicant and oppositors (Section 13(c)(3)).

Special processing in priority areas

For applications involving RAICs/RICs, socialized housing, tourism development, and PEZA-approved ECOZONES:
- The applicant submits the accomplished application and supporting documents; only complete requirements are accepted (Section 14(a)).
- Notice preparation and transmission to DAR Municipal Office for posting occurs immediately (Section 14(b)).
- MARO posts the notice within three (3) days from receipt in two conspicuous places, barangay(s) where property is located, and property itself (Section 14(c)).
- Ocular inspection begins within five (5) days from acceptance; inspection completes within three (3) days (Section 14(d)).
- The team submits report with a draft order within three (3) days from inspection (Section 14(e)).
- Approving authority resolves within two (2) days from receipt of draft order (Section 14(f)).

Reimbursement obligation for SAFDZ conversion

For approved conversion of land within SAFDZs, the registered owner must reimburse government investment through the Treasurer of the Philippines the amount equivalent to government investment cost including inflation, covering expenditures on capital goods from public resources (domestic or foreign) (Section 13(d)).
Investment valuation is:
- Equivalent to total government expenditure on the specific land, adjusted for average inflation from beginning of investment up to the month of conversion approval (Section 13(d)(1)).
- Determined jointly by the Municipal Assessor and Municipal Treasurer, in consultation with agencies that made public investments, and reviewed by the Provincial Assessor (Section 13(d)(2)).
Payment is made as a single lump sum through the Municipal Treasurer where the farmland is located (Section 13(d)(3)).

Disturbance compensation requirements

Disturbance compensation must be paid in cash or in kind (or both) by the landowner or developer, as appropriate, to tenants/farmworkers/bona fide occupants affected by conversion (Section 16(a)).
The compensation must be negotiated but cannot be less than five (5) times the average of the gross harvests during the last five (5) preceding calendar years, pursuant to Section 36 of RA 3844 as amended by Section 7 of RA 6389 (Section 16(a)).
Compensation in kind may include free housing, homelots, employment, and other benefits (Section 16(b)).
DAR approves the terms of any disturbance compensation agreement and monitors compliance (Section 16(b)).
Compliance with terms and conditions may not extend beyond sixty (60) days from DAR approval of the conversion application (Section 16(b)).
If parties do not agree on disturbance compensation amount, either party may bring the issue before the DAR Adjudication Board for resolution (Section 16(c).

Inter-agency technical role (PLUTC)

The PLUTC assists in resolving conversion applications, especially where inter-agency inputs are crucial (Section 17(a)).
The Secretary or duly authorized representative may endorse to PLUTC applications for inspection and deliberation, including those involving areas highly restricted from conversion (Section 17(a)).

Protests and opposition rights; filing deadlines

Protests may be filed by persons who will be displaced or directly affected, including occupants, tenants, farmworkers, identified beneficiaries, bona fide residents of adjoining properties/communities (Section 18(a)).
A written protest must be filed within fifteen (15) days from the date of posting of the Notice of Application (Section 18(a)).
Protestants/oppositors are furnished copies of orders/actions relative to the application (Section 18(a)).
An identified agrarian reform beneficiary who failed to protest within the 15-day period due to fraud, accident, mistake, or excusable neglect may intervene at any time during application pendency (Section 18(a)).
Protests/oppositions are filed with the Regional Office/Central Office, as appropriate (Section 19).
Grounds for protest/opposition include:
- Proof the area is non-negotiable.
- Adverse displacement effects outweigh social/economic benefits.
- Misrepresentation or concealment of material facts.
- Illegal/premature conversion.
- Proof conversion was used to evade CARP and dispossess tenant farmers (Section 20).
Protests/oppositions are resolved by the approving authority simultaneously with the application (Section 21).

Approving authorities; aggregation rule

Conversion approvals/disapprovals are made by:
- Regional Director for areas of not more than five (5) hectares (Section 22(a)(1)).
- Duly authorized Undersecretary for areas above five (5) hectares but not more than fifty (50) hectares (Section 22(a)(2)).
- Secretary for areas of more than fifty (50) hectares, except highly restricted areas, which require the Secretary’s approval regardless of the area (Section 22(a)(3)).
Determining the correct approving official uses aggregate area across multiple applications when:
- Properties are owned by the same person/entity or represented by the same person/entity; and
- Properties are located in the same barangay or adjacent barangays within the same municipality/cities (Section 22(b)).
If the subject property is adjacent to a previously issued conversion order, the same aggregation test applies to determine appropriate approving authority (Section 22(c)).
Copies of approval/disapproval orders must be furnished to applicant, protestant/oppositor (if any), and concerned DAR officials (Section 22(d)).

Effects of conversion approval; successors; annotations

Approval is limited to the specific use authorized in the conversion order (Section 23(a)).
Approval is subject to the development schedule under detailed site development plan and work and financial plan, and development period must not exceed five (5) years from conversion order issuance unless extended by the Secretary/approving official on meritorious grounds (Section 23(b)).
Conversion order conditions bind successors-in-interest (Section 23(c)).
DAR must have free and unhampered access to the property for compliance monitoring (Section 23(d)).
The use authorized in the conversion order must be annotated on the property title (Section 23(e)).
Approval is without prejudice to ancestral domain claims under Republic Act No. 8371 (Indigenous Peoples Rights Act) (Section 23(f)).

Motions for reconsideration

Applicant or protestant may file a motion for reconsideration of conversion order or denial rendered by Regional Director, Undersecretary, or Secretary within fifteen (15) days from receipt, with proof of service on adverse party (Section 24(a)).
No second motion for reconsideration by the same party is entertained (Section 24(b)).
Timely motion stays execution of the order; if denied, movant may perfect appeal within remaining appeal period; if reversed, aggrieved party has fifteen (15) days from receipt of reversal resolution to perfect appeal (Section 24(c)).

Appeals; fees; pauper litigant; timelines

The applicant and/or protestant may appeal the decision of the Regional Director, Undersecretary, or Secretary within the period prescribed in the Rules (Section 25).
Appeals must be taken within fifteen (15) days after notification of the order/protest resolution; appeals to the Office of the President must be taken within thirty (30) days from receipt of the decision/resolution/order appealed from pursuant to OP Administrative Order No. 18, series of 1987 (Section 26).
Appeal filing and fees:
- From Regional Director to Secretary: file notice of appeal with the Regional Office and pay P500.00 appeal fee to the Regional Office cashier (Section 27(a)).
- From Undersecretary to Secretary: file notice of appeal and pay P500.00 appeal fee to DAR Central Office cashier (Section 27(b)).
- From Secretary: may be appealed to Office of the President under OP Administrative Order No. 18, s. 1987 or to Court of Appeals by certiorari under Section 54 of RA 6657 (Section 27(c)).
Pauper litigant: agricultural lessee/share tenant/actual tiller/farmworker or members of farmers’ organization/association/cooperative affected, as alleged in sworn complaint/motion, are entitled to pauper litigant privileges including exemption from appeal fee without further proof (Section 28).
Appeal memorandum must be submitted within fifteen (15) days from perfection of appeal (Section 29).
Appeal perfection and jurisdiction transfer:
- If notice and appeal fee are filed in due time, appeal is perfected as to the party (Section 30(a)).
- The office that issued the challenged order/decision loses jurisdiction upon timely filing and fee payment and expiration of the period to appeal by the other party (Section 30(b)).
Representation in higher courts:
- In Office of the President appeals, the Office of the Secretary represents DAR and ensures necessary pleadings, monitoring until termination (Section 31(a)).
- In Court of Appeals appeals, the Office of the Solicitor General or a DAR lawyer deputized by the OSG represents DAR (Section 31(b)).
Effect of appeal:
- Appeals to Secretary: stay the order unless Secretary directs execution pending appeal (**E.O. 292 (1987), Book VII, Chapter 4,