August 9, 2001

DAR OPINION NO. 10-01

Mr. EDWIN P. ALMEDA

Almeda Inc.

Marvin Plaza Bldg.,

2153 Pasong Tamo, Makati City

Dear Mr. Almeda:

This refers to your query dated January 18, 2001 which was referred to us by Atty. Donna R. Ladao, Officer-in-Charge, Legal Service Group, HLURB in her 1st Indorsement dated February 27, 2001.

You posed two (2) questions, namely:

1.         Is there a need to convert from agricultural to residential properties which are to be developed into farmlot subdivision?

2.         Is there a need to secure a DAR clearance for the same purpose?

As defined in DAR Administrative Order No. 1, Series of 1999, "land use conversion" refers to the act or process of changing the current use of a piece of agricultural land into some other use as approved by DAR. On the other hand, a "farmlot subdivision" had been defined under the Human Settlements Regulatory Commission (now Housing and Land Use Regulatory Board) Rules and Regulations Implementing Farmlot Subdivision Plan as "a planned community intended primarily for intensive agricultural activities, and secondarily for housing."

If your farmlot subdivision falls squarely within the cited definition, the fact that there is a housing requirement is an indication to change the use of an agricultural land to residential and this is covered by the definition of "land use conversion." The slightest change in the agricultural land use to some other non-agricultural use (which in this case is residential), no matter how minimal the area to be covered by such change and even if housing is a secondary purpose, will be interpreted as land use conversion as defined in the cited DAR A.O. As such, there is a need to apply for a conversion clearance from the DAR and the procedures are provided in DAR A.O. 1, S. of 1999. Therefore, the answers to your questions are in the affirmative.

Additionally, Section 2 (C1) of the above mentioned HLURB Rules and Regulations provides that a clearance from the Department of Agrarian Reform is required from applicants of farmlot subdivisions.

However, if you simply intend to intensify the agricultural activity within a given land, without putting up houses, there would be no need to apply for a DAR clearance simply because there had been no change in land use.

We hope we have enlightened you on the matter.

Very truly yours,

(SGD.) VIRGILIO R. DE LOS REYES

Undersecretary

Policy, Planning and Legal Affairs Office

Copy Furnished:

Atty. Donna R. Ladao

Officer-in-Charge, Legal Service Group

Housing and Land Use Regulatory Board

HLURB Bldg., Kalayaan Ave.,

Diliman, Quezon City