MODIFIED GUIDELINES ON THE CONVERSION OF AGRICULTURAL LANDS FOR SOCIALIZED AND LOW COST HOUSING PURPOSES

In support of the government’s mass housing program, and pursuant to
Executive Order (EO) No. 258 of the Office of the President, dated June
28, 2000, prescribing time standards in the issuance of permits for
housing projects, the guidelines in the processing of applications for
conversion of agricultural lands for socialized and low-cost housing, as
provided for in DAR Administrative Order No. 1, Series of 1999, and DAR
Memorandum Circular No. 9, Series of 1999, are hereby modified or
revised as follows:

SECTION 1.       Coverage and Objective.
— These modified guidelines shall apply only to applications for
conversion involving socialized and low-cost housing projects, as
defined or construed under relevant laws and regulations, duly certified
to or indorsed by the Housing and Land Use Regulatory Board (HLURB).
They are intended to expedite the processing of such conversion
applications while ensuring the protection of prime agricultural lands.

SECTION 2.       Creation of Mass Housing Desks.
— Mass Housing Desks shall be created in the Center for Land Use
Policy, Planning at Implementation (CLUPPI) at the DAR Central Office as
well as in the Regional Centers for Policy, Planning and Implementation
( RCLUPPIs). These Mass Housing Desks shall be responsible for the
receipt, processing and disposition of all applications for conversion
for socialized and low-cost housing. The Secretary shall designate the
personnel who will be assigned to the Mass Housing Desks at CLUPPI 1 and
2, while the Regional Directors shall designate such personnel in their
respective regions.

SECTION 3.       Exemption from Certain Requirements
. — The following requirements shall not be required of applicants for
conversion involving socialized anti low-cost housing projects:

a)      Cash bond prescribed under Sec. 15 of DAR Administrative
Order No. 1, Series of 1999. In lieu thereof, the applicant shall submit
a sworn undertaking to pay to the DAR, upon demand, the amount
equivalent to the cash bond in the event it is discovered that the
applicant has undertaken premature development pending consideration of
the application for conversion;

b)      Certification of Eligibility for Conversion from the
Department of Agriculture prescribed under Sec. 10 (a) (9) of DAR
Administrative Order No. 1, Series of 1999, in line with Section 3 (b)
of the “Implementing Rules and Regulations Governing the
Operationalization of a Socialized Housing One-Stop Processing Center”
(hereafter, “SHOPC Implementing Rules”), approved on August 23, 1994;

c)      Environmental Compliance Certificate (ECC) from the
Department of Environment and Natural Resources prescribed under Section
10 (b) (6) of DAR Administrative Order No. 1, Series of 1999, in line
with Section 3(b) of the aforesaid SHOPC Implementing Rules. However, in
cases where the project is located within environmentally critical
areas ( ECAs), an ECC shall be required prior to undertaking actual
development in accordance with the DENR rules and regulations, but not
as a pre-requisite to the processing and approval by the DAR of the
application for conversion.

The rest of the documentary requirements, provided for under
Section 10 of DAR Administrative Order No. 1, Series of 1999, shall
continue to apply as may be appropriate.

SECTION 4.       Simplified Procedures.
— Applications for conversion involving socialized and low-cost housing
projects shall be processed for a period of thirteen (13) working days
upon receipt of the completed application pursuant to Sec. 1 of EO 258
(2000). In this regard, the procedures for the processing of such
applications for conversion are likewise modified as follows:

a)      Applications shall be filed either with CLUPPI or RCLUPPI
depending on the area. Those involving less than 5 hectares shall be
filed with the RCLUPPIs, except those within CALABARZON which shall
continue to be filed with CLUPPI-2, while those covering 5 hectares or
more should be filed with the CLUPPI-1;

b)      The Mass Housing Desks at the CLUPPI 1 and 2/RCLUPPIs
shall immediately prepare the notice on the same day the application is
received and transmit the same to the DAR Municipal Office for posting;

c)      The MARO shall post the notice of application within one
(1) day from receipt thereof in two (2) conspicuous places in the
municipality, the barangay(s) where the property is located, and the
property itself, for a period of three (3) days;

d)      The CLUPPI 1 and 2/RCLUPPI shall conduct ocular
inspection within three (3) days from receipt of the application and
complete the same within three (3) days. The inspection team shall
verify, among others, whether the property is not among those considered
non-negotiable for conversion pursuant to Sec. 4 of DAR Administrative
Order No. 1, series of 1999;

e)      Within three (3) days from completion of the inspection,
the team shall submit its report, together with a draft order resolving
the application, to the CLUPPI Executive Director or the RCLUPPI
Chairman, as may be appropriate;

f)       The CLUPPI Executive Director or the RCLUPPI Chairman
shall review the draft and finalize the same within three (3) days from
receipt thereof, and transmit the same to the approving authority. The
application shall no longer be subjected to deliberation by the CLUPPI
Executive Committee;

g)      The approving authority shall act on the application within two (2) days from receipt of the draft order.

SECTION 5.       Approving Authority.
— Sec. 22 of DAR Administrative Order No. 1, Series of 1999 which
identifies the DAR officials authorized to approve or disapprove
conversion of agricultural lands to non-agricultural uses shall apply to
applications for conversion involving socialized and low-cost housing
projects.

SECTION 6.       Participation of Civil Society Organizations
. — To encourage greater civil society participation in the process of
deciding whether to allow the development of agricultural areas for
socialized and low-cost housing, the DAR, through the Secretary, may
enter into appropriate arrangements with organizations or associations
involved in socialized and low-cost housing, consistent with laws, rules
and regulations, to ensure that applicants undertake proper due
diligence in selecting areas for mass housing development, facilitate
inspection of areas applied for conversion, expedite processing of
applications, and monitor compliance by developers of the terms and
conditions of conversion orders.

SECTION 7.       Repealing Clause.
— The provisions of Sec. 10 (a) (9) and (b) (6), 14 and 15 of DAR
Administrative Order No. 1, Series of 1999, Item 1.6 and 5.3 of DAR
Memorandum Circular No. 9, Series of 1999, in so far as they pertain to
socialized and low-cost housing projects, as well as all issuances or
provisions thereof inconsistent with this Order are hereby repealed or
modified accordingly.

SECTION 8.       Effectivity . — This Order shall take effect ten (10) days after its publication in two (2) newspapers of general circulation.

Adopted: 29 Aug. 2000.

(SGD.) HORACIO R. MORALES JR.
Secretary