Title
Urban Land Reform Act Overview
Law
Presidential Decree No. 1517
Decision Date
Jun 11, 1978
Presidential Decree No. 1517, the Urban Land Reform Act, aims to address urbanization issues, improve conditions for the urban poor, and promote planned development in the Philippines by introducing various mechanisms and protections for landowners and tenants.
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Key Definitions

  • Development Rights: Rights to develop and intensify land use
  • Land Assembly: Acquiring multiple lots for planned development
  • Land Banking: Acquiring land before actual need to influence prices and promote planning
  • Land Exchange: Bartering land or shares with government entities
  • Joint Venture: Collaboration of separate interests for mutual benefit
  • Tenant: Rightful occupant with continuous residence, excludes forceful or tolerated occupants
  • Urban Lands: Areas with high population density and non-agricultural economic activity
  • Urbanizable Lands: Areas likely to become urban within 5 to 10 years

Proclamation and Planning of Urban Land Reform Zones (Urban Zones)

  • The President proclaims specific urban/urbanizable lands as Urban Land Reform Zones
  • Ministry of Human Settlements prepares development and zoning plans
  • Strict adherence to approved plans required for land use and disposition

Establishment of Urban Land Reform Coordinating Council

  • Composed of Ministers from key government departments and Land Bank President
  • Formulates policies, rules, and regulations for program implementation
  • Ministry of Human Settlements chairs the Council

Protection of Legitimate Tenants and Residents

  • Tenants with 10+ years residence and homeowners cannot be dispossessed
  • Right of first refusal to purchase land at reasonable terms
  • Government to acquire land if tenants cannot purchase, including expropriation

Power of Eminent Domain and Urban Zone Expropriation Committee

  • Ministry given eminent domain power within Urban Zones
  • Committee created to assist in expropriation, planning, and land management

Declaration of Sale and Pre-emptive Acquisition Rights

  • Landowners and tenants must declare plans to sell, lease, or encumber land
  • Ministry holds pre-emptive right to acquire such lands

Urban Land Ceiling and Acquisition Limits

  • Batasang Pambansa sets maximum land ownership size to prevent concentration
  • Government may acquire excess lands

Innovative Land Acquisition Techniques

  • Includes land assembly, banking, exchange, consolidation, readjustment, joint ventures
  • Alternative methods beyond purchase and expropriation authorized

Valuation and Registry Systems

  • Ministry of Finance develops new valuation methods suited for innovative acquisition
  • Establishment of Official Development Registry to register land rights and development intents
  • Registry information mandatory from landholders and developers

Role of Bureau of Lands and Land Registration Commission

  • Provide cadastral maps and information
  • Must get Ministry clearance for transactions in Urban Zones

Land Disposition Policies and Techniques

  • Combination of disposition methods encouraged
  • Authorized to provide neighborhood ownership, freeholds with conditions, separate tenure for improvements
  • Human Settlements Development Corporation empowered to dispose lands accordingly

Development Use Permit System

  • No land development, alterations, or construction without Development Use Permit
  • Permits issued by Ministry through Regulatory Commission

Taxation and Inventory of Idle Lands

  • Tax system to support reform policies within Urban Zones
  • Inventory and assessment of idle lands prioritized in Urban Zones

Land Development Financing and Accounting

  • Programs for mobilizing funds from private and public sectors
  • Land Development Accounting System for tracking transactions and revenues

Public Hearings and Participation

  • Ministry must conduct public hearings after proclamation of Urban Zones
  • Allows affected parties to present views and grievances

Penalties and Administrative Sanctions

  • Administrative fines up to P10,000 for violations
  • Penal fines up to P20,000 and/or imprisonment up to ten years
  • Separate offenses for each day violation continues
  • Penalties apply to officials in corporations or associations; immigrants subject to deportation after sentence

Repealing, Separability, and Effectivity Clauses

  • Repeals inconsistent laws, orders, and rules
  • Invalid provisions do not affect the remainder of the Decree
  • Effective immediately upon promulgation

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