WHEREAS, it
is declared objective of the New Society to effect social, economic and
political reforms attuned to the establishment of a secure national
community and to an improved quality of life for all citizens and for
all others who may sojourn our shores; chanroblesvirtualawlibrary
WHEREAS, the quality of human life in our times is inescapably
determined by the relationship among population, resources, the
environment, and intelligent policies;chanroblesvirtualawlibrary
WHEREAS, human settlement is an integrative concept embracing the
interdependence of man's environment, human shelters and structures,
and the design and organization of human communities consistent with a
national framework plan, all for the people's security and well-being.
WHEREAS, land is the ultimate platform of all man's activities, and the
crucial factor in determining the shape of human settlements;chanroblesvirtualawlibrary
WHEREAS, the basic law of the land explicitly provides for the
regulation of the acquisition, ownership, use, enjoyment and
disposition of private property and for the equitable diffusion of
property ownership and profits which includes land and land resources;chanroblesvirtualawlibrary
WHEREAS, the traditional concept of landownership has aggravated the
problem arising from urbanization such as the proliferation of blighted
areas and the worsening of the plight of the urban poor and has spawned
valid and legitimate grievances in urban centers giving rise to social
tension and violent conflicts;chanroblesvirtualawlibrary
WHEREAS, a social reform objective of the New Society is to renew
blighted areas, improve the conditions of the urban poor and resolve
and redress legitimate grievances arising therefrom, while at the same
providing incentives to progressive landowners and developers who wish
to develop their lands in accordance with government plans and programs
responsive to community welfare.
NOW, THEREFORE, in the light of the above premises, I, FERDINAND E.
MARCOS, President of the Philippines, by virtue of the powers vested in
me by the Constitution, do hereby order and decree and make as part of
the law of the land that:cralaw:red
Section 1. Title. — This Act shall be known as the
Urban Land Reform Act.
Section 2. Declaration of Policy. — It is hereby
declared to be the policy of the State a) to liberate our human
communities from blight, congestion, and hazard and to promote their
development and modernization; b) to bring out the optimum use of land
as a national resource for public welfare rather than as a commodity of
trade subject to price speculation and indiscriminate use; c) to
provide equitable access and opportunity to the use and enjoyment of
the fruits of the land; d) to acquire such lands as are necessary to
prevent speculative buying of land for public welfare; and e) to
maintain and support a vigorous private enterprise system responsive to
community requirements in the use and development of urban
lands. chanroblesvirtualawlibrary
Section 3. Definitions. — As used in this Decree, the
following words and phrases shall have the following meanings and
definitions:cralaw:red
(a) Development Rights, also known as "new use
rights", refers to the right to use and/or develop land and
improvements thereon including putting them to a more intensive use,
conversion to a more profitable use, increasing density and the like.
(b) Land Assembly refers to the acquisition of lots
varying ownership through, among others, expropriation or negotiated
purchase, for the purpose of planning and development unrestricted by
individual property boundaries.
(c) Land Banking refers to the acquisition of land in
advance of actual need for the purpose of acquiring lands at existing
use value and disposing of them in a manner which would influence land
price formation and promote planned development.
(d) Land Exchange refers to the process of bartering
land for another piece of land and/or shares of stock of equal value in
a government or quasi-government corporation.
(e) Joint Ventures refers to the commitment, for more
than a limited duration, of funds, land resources, facilities and
services by two or more legally separate interests, to an enterprise
for their mutual benefit.
(f) Tenant refers to the rightful occupant of land
and its structures, but does not include those whose presence on the
land is merely tolerated and without the benefit of contract, those who
enter the land by force or deceit, or those whose possession is under
litigation.
(g) Urban lands refer to the lands which conform to
any of the following criteria:cralaw:red
1. In their entirety, all cities and municipalities
which have the population density of at least 1,000 persons per square
kilometer and where at least 50 percent of the economically active
population are engaged in non-agricultural activities.
2. All barangays comprising the former poblacion or
barangays including a part of the former poblacion of cities or
municipalities which have a population density of greater than 500 but
less than 1,000 persons per square kilometer; and where at least 50
percent of the economically active population engaged in
non-agricultural activities. chanroblesvirtualawlibrary
3. All barangays not included in items 1 and 2 above
which have a population size of at least 1,000 and where at least 50
percent of the economically active population are engaged in
non-agricultural activities.
(h) Urbanizable lands refers to sites and land areas
which, considering present characteristics and prevailing conditions,
display a marked and high probability of becoming urban lands within
the period of five to ten years.
Section 4. Proclamation of Urban Land Reform Zones. —
The President shall proclaim specific parcels of urban and urbanizable
lands as Urban land Reform Zones, otherwise known as Urban Zones for
purposes of this Decree, which may include Bagong Lipunan Sites, as
defined in P.D. 1396.
Upon proclamation, the Ministry of Human Settlements, hereafter
referred to as the Ministry, shall prepare the appropriate development
and zoning plans, and formulate the enforcement and implementing
guidelines which shall in force and effect upon approval by the
President and shall be enforced by the Ministry or its attached
agencies.
No urban land can be disposed of or used or constructed on unless its
disposition or use conforms with the development and zoning plans of
the Ministry, and the approved enforcement and implementation
guidelines in accordance with the Official Development Registry System
and the Development Use Permit System provided for in Section 13 and 16
of this Decree.
Section 5. Creation of an Urban Land Reform
Coordinating Council. — An interagency body, to be known as the Urban
Land Reform Coordinating Council hereinafter referred to as the
Coordinating Council, is hereby constituted. It shall be composed of
the Ministers of Human Settlements Agrarian Reform, Finance, Justice,
Local Government and Community Development, Industry, National
Resources, and the President of the Land Bank; with the Minister of
Human Settlements as the Chairman. chanroblesvirtualawlibrary
The Ministry, in conjunction with the Coordinating Council, shall
formulate the general policies and guidelines for the Urban Land Reform
Program and its rules and regulations, which shall come into force and
effect upon the approval of the President.
Section 6. Land Tenancy in Urban Land Reform Areas. —
Within the Urban Zones legitimate tenants who have resided on the land
for ten years or more who have built their homes on the land and
residents who have legally occupied the lands by contract, continuously
for the last ten years shall not be dispossessed of the land and shall
be allowed the right of first refusal to purchase the same within a
reasonable time and at reasonable prices, under terms and conditions to
be determined by the Urban Zone Expropriation and Land Management
Committee created by Section 8 of this Decree.
Section 7. Acquisition of Residential Lands for
Existing Tenants and Residents. — In cases where the tenants and
residents, referred to in Section 6 of this Decree, are unable to
purchase the said lands, the Government shall acquire the land and/or
improvements thereon by expropriation or other land acquisition
technique provided for under Section 11 of this Decree.
In case of expropriation the Government shall acquire said lands in
accordance with the policies of existing law especially Presidential
Decree No. 76 as amended by paragraph 3 of Presidential Decree No. 1224
and Section 1 of Presidential Decree No. 1313 as herein amended.
Upon the filing of the petition for expropriation and the deposit in
the Philippine National Bank at its main office or any of its branches
of the amount equivalent to ten per cent (10%) of the declared
assessment value in 1975, the Government, or its authorized agency or
entity shall immediately have possession, control and disposition of
the real property and the improvements thereon with the power of
demolition, if necessary, even pending resolution of the issues that
may be raised whether before the Court of First Instance, Court of
Agrarian Relations, or the higher Courts.
Section 8. Creation of Urban Zone Expropriation and
Land Management Committee. — For the purpose of expropriating lands as
provided under Section 7, the Ministry is hereby vested with the power
of eminent domain.
To assist the Ministry in the exercise of this power, an Urban Zone
Expropriation and Land Management Committee, hereinafter referred to as
the Committee, shall be created in the city, town or locality or within
the Urban Zone, to be composed of members from the relevant government
and private sectors designated by the Minister of Human Settlements,
with the authorized representative of the Ministry serving as the
Chairman.
The Committee shall in addition to the above mentioned function,
formulate programs and projects specific to the Urban Zones, specifying
among others, the operative procedure for land acquisition and its
phasing, and shall recommend to the Coordinating Council the
appropriate made of disposition and other related aspects of land
management.
Section 9. Compulsory Declaration of Sale and
Pre-emptive Rights. — Upon the proclamation by the President of an area
as an Urban Land Reform Zone, all landowners tenants and residents
thereupon are required to declare to the Ministry any proposal to sell,
lease or encumber lands and improvements thereon, including the
proposed price, rent or value of encumbrances and secure approval of
said proposed transaction. chanroblesvirtualawlibrary
The Ministry shall have the pre-emptive right to acquire the above
mentioned lands and improvements thereon which shall include, but shall
not be limited to lands occupied by tenants as provided for in Section
6 of this Decree. chanroblesvirtualawlibrary
Section 10. Innovative Land Acquisition Techniques. —
The Ministry and/or its appropriate attached agency is hereby
authorized to utilize any innovative land acquisition techniques as an
alternative to land purchase and expropriation for the purpose of
acquiring lands within the proclaimed ULRZS and/or Bagong Lipunan
sites, including land assembly, land banking, land exchange land
consolidation and readjustment and joint venture arrangements.
Section 11. Land Valuation. — The Ministry of Finance
shall develop and utilize new valuation techniques and assessment
classification levels appropriate to the innovative acquisition
techniques and tax system provided for in this Decree.
Section 12. Official Development Registry. — To
provide the basis for decisions of the Ministry with regard to land
acquisition, exercise of pre-emptive rights under Section 9 of this
Decree and disposition of lands, and to regulate transactions affecting
land, the Ministry, through the Human Settlements Regulatory
Commission, shall undertake on a continuing basis in every proclaimed
Urban Zone, registration of existing land rights and interests, and
development proposals of public and private entities through the
establishment of an Official Development Registry.
The Registry shall contain, among others, information on detailed
boundaries, of lands, titles to said lands and intent to acquire and/or
develop specific parcels of land, which information shall be furnished
by the holders of land rights and interested developers.
Section 13. Role of the Bureau of Lands and the Land
Registration Commission. — The Bureau of Lands and the Land
Registration Commission shall provide the Ministry with the cadastral
maps and other information entered into the Development
Registry. chanroblesvirtualawlibrary
The Land Registration Commission, shall prior to registration of any
transactions affecting properties in the Urban Zones, first secure
clearance from the Ministry.
Section 14. Land Disposition. — The Government shall
adopt, as a general policy, a combination of land disposition
techniques within the Urban Land Reform Zones.
The Ministry is hereby authorized to utilize innovative land
disposition techniques in Urban Zones and/or Bagong Lipunan sites,
including neighborhood ownership, residential freeholds subject to
improvement conditions and the reservation of development rights, and
tenure in improvements separate from tenure in land. For this purpose,
the Human Settlements Development Corporation create under P.D. 1396 as
the corporate arm of the Ministry shall, notwithstanding the
prohibition contained in Section 7(e) of P.D. 1396 be authorized to
dispose of lands in any of them manner provided for in this Section.
The Ministry, in consultation with the Coordinating Council, shall
determine the appropriate land disposition schemes for each Urban Zones.
Section 15. Development Use Permit System for Urban
Land Reform Areas. — A comprehensive development use permit system is
hereby established in proclaimed Urban Zones and/or Bagong Lipunan
sites which shall govern the development of lands within said areas.
Under this system, no development of lands, including its use,
alteration and construction thereon shall take place without the
corresponding Development Use Permit being issued by the Ministry,
through the Human Settlements Regulatory Commission.
Section 16. Taxation. — Within designated Urban Zones
and/or Bagong Lipunan sites, the government shall implement a taxation
system in support of the basic policies underlying the urban land
reform program.
For these purpose, the Ministry of Natural Resources and the Ministry
of Finance shall conduct an inventory, assessment of idle lands
throughout the Philippines, with priority given to Urban Zones.
Section 17. Land Development Financing. — To ensure
and encourage private participation in land development and management
activities the Ministry, with the appropriate public and private
agencies, shall develop and recommend for the President's approval
appropriate programs which shall mobilize land development funds from
private individual group sources, government financial institution,
joint public-private ventures, and private financial institutions.
Section 18. Land Development Accounting. — The
Ministry shall, where deemed necessary, institute a Land Development
Accounting System for Urban Zones and designated Bagong Lipunan sites,
which shall constitute a record of market transactions and revenues
related to Government land acquisition, development and management
activities.
Section 19. Public Hearings. — The Ministry through
the Human Settlements Regulatory Commission shall, upon proclamation of
Urban Zones, conduct public hearings in order to allow the persons
affected by said proclamation and related acts, to present their views
grievances and recommendations to the Ministry.
Section 20. Administrative Fines. — Any violation of
any provisions of this Decree or any of the rules or regulations issued
thereunder shall be subject to the fines not exceeding ten thousand
pesos (P10,000) to be imposed by the Ministry through the Human
Settlements Regulatory Commission. chanroblesvirtualawlibrary
Section 21. Penal Provisions. — Any person, firm or
corporation who shall violate the provisions of this Decree and/or any
rules or regulations issued thereunder shall, upon conviction, be
punished by a fine of not more than twenty thousand pesos (P20,000)
and/or imprisonment of not more than ten years or both at the
discretion of the court, Provided that in the case of a corporation,
firm, partnership, or association, the penalty shall be imposed upon
its officials for such violation, and in case the guilty party is an
alien, he shall immediately be deported after payment of the fine and
serving the imprisonment.
Provided further, that every day that the violation shall be carried on
or permitted to be carried on shall be considered as a separate offense.
Section 22. Repealing Clause. — All laws, decrees,
executive orders, rules and regulations inconsistent herewith are
hereby repealed, amended or modified accordingly.
Section 23. Separability Clause. — If, for any
reasons, any section or provision of the Decree is hereby declared to
be unconstitutional or invalid, the other provisions hereof not
affected shall continue in full force and effect.
Section 24. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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