September 10, 2001

DAR OPINION NO. 16-01

MEMORANDUM

FOR             :     Atty. Wenceslao E. Saguidec
                                          Assistant Regional Director for Administration
                                         DAR-Cordillera Administrative Region
                                         Baguio City

SUBJECT    :     Legal Opinion Regarding Land Use Conversion in Relation to Exemption from CARP Coverage

In connection with the issues raised in your letter, the following are our opinion on the matter:

1.         Effect of Exemption pursuant to Section 10, R.A. No. 6657.

The effect of an exemption granted pursuant to the said provision of RA. No. 6657 is merely to remove the land from its possible acquisition and distribution under the Comprehensive Agrarian Reform Program (CARP). This does not render a total exemption from the application of Agrarian Reform laws and their implementing rules and regulations. The DAR may still implement the other components of the program, i.e., leasehold and the Integrated Social Forestry Program, where applicable. In this case, a DAR Order of Exemption must be secured because the exemption referred hereto is not automatic. It is incumbent upon the landowner to prove that his land is exempted from CARP coverage.

A DAR Order of Exemption does not operate as a sanction for the landowner to modify the actual use of the land. When the land is removed from CARP coverage, it does not follow that conversion of the land into other uses is authorized. If the intention of the landowner is to convert the agricultural land into residential, commercial or industrial, thereby changing the agricultural use of the land into non-agricultural use, a DAR Order of Exemption will not suffice. Instead, a DAR Order of Conversion must still be obtained.

2.         Basis of Land Use Conversion

Pursuant to Section 4 of Memorandum Circular No. 54, series of 1993 of the Office of the President, in relation to Section 65 of R.A. No. 6657 and Sections 4 (j) and 5 (l) of Executive Order No. 129-A, actions on applications for land use conversions shall remain as the responsibility of DAR. The DAR shall, in such applications, utilize as its primary reference, documents on the Comprehensive Land Use Plan and accompanying ordinance passed upon and approved by the local government units concerned, together with the National Land Use Policy. It must be stressed, however, that although said documents serve as bases to support an Application for Conversion, actual land use conversion takes place only upon the issuance of a DAR Order approving said application.

3.         Exemption pursuant to DOJ Opinion No. 44, Series of 1990

DOJ Opinion No. 44, Series of 1990 ruled that all lands already classified as commercial, industrial or residential before June 15, 1988 pursuant to a Municipal/City Ordinance or zoning plan duly approved by the Housing and Land Use Regulatory Board (HLURB) before June 15, 1988 is exempted from CARP coverage. However, the landowner or his duly authorized representative of the properties falling under this category must still apply for an Exemption Clearance from the DAR before any change in its actual use may be introduced.

With respect to agricultural lands which are reclassified as commercial, industrial or residential in the new or revised town plans promulgated by the local government unit (LGU) and approved by the HLURB or by the Sangguniang Panlalawigan (SP) after June 15, 1988 in accordance with Section 20 of R. A. No. 7160 (Local Government Code), and other pertinent laws and regulations, Conversion Clearance must be secured from the DAR before these lands may be converted to such uses.

Please be guided accordingly.

(SGD.) VIRGILIO R. DE LOS REYES

Undersecretary for Policy, Planning and Legal Affairs Office

Copy furnished:

Dir. Wilfredo B. Leaño

DAR-Cordillera Administrative Region

Easter College Gymnasium Building

Guisad, Baguio City