Legal basis and governing mandates
- DAR must approve or disapprove applications for conversion, restructuring, or readjustment of agricultural lands into non-agricultural uses under Section 4(k) of Executive Order No. 129-A (1987).
- DAR has exclusive authority to approve or disapprove applications for conversion of agricultural lands for residential, commercial, industrial, and other land uses under Section 5(1) of Executive Order No. 129-A (1987).
- DAR may authorize reclassification or conversion and disposition subject to the conditions embodied in Section 65 of Republic Act No. 6657.
- Conversion must be guided by the principles and policies enunciated in Section 2 of Republic Act No. 6657 and Executive Order No. 229 (1987).
- Land use classification and reclassification after 15 June 1988 are subject to DAR approval, while classification of land from agricultural to non-agricultural uses follows BP 337, Republic Act No. 2264, and Executive Order No. 648.
Policy guidelines and conversion limits
- Conversion of agricultural lands must support distribution of agricultural lands to as many tenants and farmworkers as possible under Sections 2 and 3(a) of Republic Act No. 6657.
- If agricultural lands are untenanted or have no farmworkers, DAR must locate qualified beneficiaries under Section 22 and Section 7 of Republic Act No. 6657.
- Lands devoted to or suitable for agriculture shall not be converted into non-agricultural uses except under the specific instances in these Rules.
- Conversion requires a certification from DENR that the conversion is ecologically sound in all cases.
- Conversion to non-agricultural uses is allowed only in the following instances:
- When the land ceases to be economically feasible and sound for agricultural purposes as certified by the Regional Director of the Department of Agriculture (DA); or when the land or locality has become highly urbanized and will have greater economic value for residential, commercial, or industrial purposes as certified by the Deputized Zoning Administrator of HLURB.
- When lands are classified as commercial, industrial, and residential in new or revised town plans approved by Inter-Agency Planning Task Forces organized by HLURB with participation of DA, DENR, DAR, Department of Trade and Industry (DTI), National Economic and Development Authority (NEDA), and DOT in applicable cases, with affected communities and concerned NGOs involved in the town planning process.
- When the city/municipality has no land use plans or integrated zoning ordinance duly approved by HLURB, and the dominant use of the area surrounding the land is no longer agricultural; and the proposed use is similar to or compatible with the dominant surrounding use; decisions must use the Regional Physical Framework Plan approved by the Regional Development Council (RDC) as basis.
- After a Notice of Acquisition under compulsory acquisition, receipt of a Voluntary Offer to Sell or an application for stock distribution, or receipt of a perfected agreement for voluntary land transfer, no conversion application on the subject land from the landowner or any person acting for the landowner is processed for due course.
- For projects that displace farmer-beneficiaries, a disturbance compensation must be paid in an amount not less than five (5) times the average of the annual gross value of the harvest on their actual landholdings during the last five (5) preceding calendar years.
- For displacements, DAR must exert its best efforts to ensure that homelots and employment for displaced beneficiaries are provided by the applicant/developer.
- To prevent circumvention of CARP, conversion requires evidence that the project is viable and beneficial to the affected community and that the land development phase can be completed:
- Within one (1) year after issuance of the development permit where the area is five (5) hectares or less.
- If the area exceeds five (5) hectares, development must be completed with an additional one (1) year for every five (5) hectares or fraction thereof, but completion may not extend beyond five (5) years from issuance of the development permit.
- Preparation of new land use plans and zoning ordinances, and updating existing ones (including those approved by HLURB prior to 15 June 1988) is covered under these Rules with respect to changes in current agricultural land use or classification.
Coverage and defined concepts
- These Rules cover all private agricultural lands, whether tenanted or not, regardless of crops or commodity produced.
- “Agricultural land” means land devoted to agricultural activity as defined in Republic Act No. 6657.
- “Agricultural land” excludes land classified as mineral or forest by DENR and its predecessor agencies.
- “Agricultural land” excludes land classified in town plans and zoning ordinances approved by HLURB and its predecessor authorities prior to 15 June 1988 for residential, commercial, or industrial use.
- “Conversion” is the act of authorizing the change of the current use of a piece of land into some other use.
- “Land Use Classification” is the allocation of lands to different activities or class of land uses developed through the town planning and zoning process.
- “Land Use Plan” is a land use map (or map equivalent) indicating a socially desired mix of land uses and guiding policies for future development.
- “Zoning” is the delineation of areas or districts that may be put to specific uses and the limitations that apply in each land use district.
- “Zoning Ordinance” is the legal regulation enforcing the land use plan and containing penal provisions for violations, reviewed and approved by HLURB together with land use plans.
- “Private Agricultural Lands” are lands devoted to or suitable for agriculture as defined in Republic Act No. 6657, owned by natural or juridical persons, including lands owned by government in its proprietary capacity.
Who may apply
- Owners of private agricultural lands or persons authorized by them may apply, including land developers duly licensed by HLURB or the relevant government agency.
- Farmer-beneficiaries of the Agrarian Reform Program may apply after the lapse of five (5) years from award of land to them, provided they have fully paid their obligations and are qualified under these Rules, or persons duly authorized by them.
- Government agencies may apply, including government-owned or controlled corporations.
Documentary requirements to file
- All applicants must submit four (4) copies of Application for Conversion.
- If the petitioner is not the landowner, a Special Power-of-Attorney must be submitted.
- Applicants must attach a certified xerox copy of the Original Certificate of Title (OCT)/Transfer Certificate of Title (TCT) and/or other documents establishing ownership.
- Applicants must submit a Location Plan/Vicinity Map of the land.
- Applicants must submit a certification from the HLURB Deputized Zoning Administrator for the city/municipality concerned, or the Regional HLURB Officer if no such deputized administrator exists, that the proposed use conforms with the approved Land Use Plan; the certification must specify the HLURB Resolution Number and its date of approval.
- Applicants must submit either:
- a DAR Regional Director certification that the land has ceased to be economically feasible and sound for agricultural purposes, or
- an HLURB Deputized Zoning Administrator certification that the land or locality has become highly urbanized and will have greater economic value for commercial, industrial, and residential purposes.
- Applicants must submit a DENR Regional Director certification that the proposed conversion is ecologically sound.
- Applicants must present proof of financial and organizational capability to develop the land as determined by HLURB.
- Applicants must include a statement of justification on the economic and social benefits of the project.
- Applicants must submit a Municipal Agrarian Reform Officer (MARO) certification that there are no agrarian reform beneficiaries in the subject land whenever applicable.
- If the land has qualified farmer-beneficiaries, applicants must submit proof of payment of disturbance compensation, consisting of an Acknowledgment receipt by tenant/farmworker attested by BARC or Barangay Chairman and MARO, or an undertaking to pay disturbance compensation through an agreement signed by the tenant/farmworker and applicant containing an undertaking to pay disturbance compensation in kind (including award of homelots or grant of priority in employment and similar measures).
- Beneficiary applicants must additionally submit:
- DAR certification that the applicant is the actual farmer-awardee and that at least five (5) years have elapsed since the award,
- LBP certification that the farmer-awardee has fully paid obligations, and
- DAR PARO certification that the farmer-beneficiaries agreed to the conversion.
- For land intended for government use or joint government-private sector projects, applicants must submit:
- a city or municipal council ordinance endorsing the conversion, and
- approval of the project by the authorized government agency.
Protests, hearings, and resolution
- Any person who may be displaced may file a protest or opposition before the Provincial Agrarian Reform Adjudicator (PARAD), following the rules and procedures adopted by the DAR Adjudication Board (DARAB).
- The protest or opposition must be investigated and resolved by the PARAD or the designated Hearing Officer, following the guidelines in these Rules.
- In case of appeal, the matter must be resolved by DARAB.
- Filing a protest does not automatically stop processing and approval if the application clearly falls within these Rules.
Cancellation/withdrawal of conversion authority
- Conversion authorization issued by the Secretary, the Undersecretary for Legal Affairs, or the Regional Director (depending on case) may be withdrawn or cancelled on these grounds:
- Misrepresentation or concealment of material facts in the application.
- Failure to complete land development within the time frame specified in Section IV(F).
- Any other violations of rules and regulations that are material to the grant of the conversion order.
- Petitions for cancellation/withdrawal based on misrepresentation/concealment or material violations must be filed by interested parties or DAR motu proprio within ninety (90) days from issuance of the conversion order.
- Such petitions must be filed with the Offices of the Secretary, the Undersecretary for Legal Affairs, or the Regional Director which must decide after due notice and hearing.
- For petitions based on failure to complete development under Section IV(F), the ninety (90) day period is reckoned from the date the one (1) year requirement in Section IV-(F) lapses.
Effects of disapproval or cancellation; default and prosecution
- Disapproved conversion applications and cancelled/withdrawn conversion orders are placed under CARP compulsory coverage under the schedule of implementation in Section 7 of Republic Act No. 6657.
- Such lands must be distributed to all qualified beneficiaries.
- An applicant previously authorized to convert but who failed to complete development for valid reasons beyond control (including fortuitous events and natural calamities) may be granted a one (1) year extension to comply with the terms and conditions of the DAR Land Use Conversion Order.
- Persons who knowingly and willfully converted agricultural lands to non-agricultural uses in violation of Republic Act No. 6657 and these Rules must be prosecuted.
Repeal, transitory application, and implementing coordination
- These Rules repeal Administrative Order No. 15 Series of 1988 and 1989, General Order No. 1, Series of 1989, Administrative Order No. 18, Series of 1989, and all previous issuances inconsistent with these Rules.
- These Rules apply to all applications filed on or after their effectivity.
- Applications filed before effectivity must be governed by the pertinent administrative orders or issuances in force at the time of filing and processed accordingly.
- The DA, DAR, DTI, NEDA, DENR, and DOT in applicable cases must serve as members of the Inter-Agency Town Planning Task Forces at all levels and the Inter-Agency Town Planning Review Committee to ensure effective implementation and speed up decisions on conversion applications.