DEFINING THE POLICY ON THE EXPROPRIATION OF PRIVATE PROPERTY FOR SOCIALIZED HOUSING UPON PAYMENT OF JUST COMPENSATION

WHEREAS, in the pursuit of the social reform program, there
is need to clarify the basic policies concerning the acquisition by government
of private property for public use after payment of just compensation;

WHEREAS, Presidential Decree No. 76 which requires
declaration by sworn statement of the true value of real property and
improvements thereon as of June 30, 1973, provides that “for purposes of just
compensation in cases of private property acquired by the government for public
use, the basis shall be the current and fair market value declared by the owner
or administrator, or such market value as determined by the assessor, whichever
is lower.”

WHEREAS, there are some doubts raised as to whether the
government can acquire upon payment of just compensation private lands for
social housing for the middle and lower class members of society;

WHEREAS, doubts have also been expressed as to the proper
valuation to be followed in the determination of just compensation in
expropriation proceedings:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree that:

1. The term “public use” for purposes of acquisition by government, either by
   itself or through any authorized agency or entity, of any private land and
   improvements thereon shall include acquisition for the purpose of socialized
   housing (the construction of dwelling units for the middle and lower class
   members of our society, including the construction of the supporting
   infrastructure and other facilities).
2. In the determination of just compensation for such private lands and
   improvements to be expropriated, the Government shall choose between the value
   of the real property and the improvements thereon as declared by the owner or
   administrator thereof from time to time or the market value as may be determined
   by the city or provincial assessor, whichever is lower.
3. Upon the filing of the petition for expropriation and the deposit of the
   amount of just compensation as provided for herein, the Government, or its
   authorized agency or entity, shall immediately have possession, control and
   disposition of the real property and the improvements thereon even pending
   resolution of the issues that may be raised whether before the Court of First
   Instance or the higher courts.

This Decree shall take effect immediately.

Done in the City of Manila, this 21st day of October, in the year of Our
Lord, nineteen hundred and seventy-seven.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant