LOCAL GOVERNMENT CODE (CONVERSION)

SECTION 20. Reclassification of Lands. – (a) A city or municipality may, through an ordinance
passed by the sanggunian after conducting public hearings for the purpose, authorize the
reclassification of agricultural lands and provide for the manner of their utilization or disposition
in the following cases:

(1) when the land ceases to be economically feasible and sound for agricultural purposes as
determined by the Department of Agriculture or

(2) where the land shall have substantially greater economic value for residential, commercial,
or industrial purposes, as determined by the sanggunian concerned:

Provided, That such reclassification shall be limited to the following percentage of the total
agricultural land area at the time of the passage of the ordinance:

(1) For highly urbanized and independent component cities, fifteen percent (15%);

(2) For component cities and first to the third class municipalities, ten percent (10%); and

(3) For fourth to sixth class municipalities, five percent (5%): Provided, further, That agricultural
lands distributed to agrarian reform beneficiaries pursuant to Republic Act Numbered Sixty-six
hundred fifty-seven (R.A. No. 6657). otherwise known as “The Comprehensive Agrarian
Reform Law”, shall not be affected by the said reclassification and the conversion of such lands
into other purposes shall be governed by Section 65 of said Act.

(b) The President may, when public interest so requires and upon recommendation of the
National Economic and Development Authority, authorize a city or municipality to reclassify
lands in excess of the limits set in the next preceding paragraph.

(c) The local government units shall, in conformity with existing laws, continue to prepare their
respective comprehensive land use plans enacted through zoning ordinances which shall be the
primary and dominant bases for the future use of land resources: Provided, That the requirements
for food production, human settlements, and industrial expansion shall be taken into
consideration in the preparation of such plans.

(d) Where approval by a national agency is required for reclassification, such approval shall not
be unreasonably withheld. Failure to act on a proper and complete application for reclassification
within three (3) months from receipt of the same shall be deemed as approval thereof.

(e) Nothing in this Section shall be construed as repealing, amending, or modifying in any
manner the provisions of R.A. No. 6657.
CONVERSION (DAR A.O. 1 Series of 2002)

Conversion allowed if

1. Not considered non-negotiable for conversion under section 4.

2. When land ceases to be feasible and sound for agriculture or locality has become urbanized and
land has greater economic value for residential, commercial or industrial purposes
3. SADFZ, Rule 9.5.2 of DA-AO-6-1998
a. Consistent with natural expansion of locality/municipality approved by land use plan
b. Area is not the only food production area of the community
c. Not hamper the availability of irrigation
d. Are has low productivity
e. Sufficient disturbance compensation shall be given to farmers affected
4. If acquired under RA6657, only if applicant is the ARB and he has fully paid his obligation

Who may apply:

1. Owner or duly authorized representative of private agricultural land

2. ARB after the lapse of 5 years from award, record from the issuance of CLOA and has fully paid
their obligations.
3. Government agencies, including NGOs and LGU’s which own agricultural lands as their
patrimonial properties

Section 10. Documentary Requirements. (including notarized application form)

General rule: submit requirements at the time of filing.

EX: housing projects.

GR: if greater than 5 hectares = approving authority is the SECRETARY.

Application concerns parcel of land that is adjacent to a parcel of land previously granted a conversion
order, OR applicant is representative of 2 land owners within same barangay or 2 barangays that are
adjacent, and the sum exceeds 5 hectares, approving authority is the secretary.

If anyone disputes the calculation, and higher authority takes cognizance= DAR approving authority shall
hold in abeyance the conversion until higher authority determines .

PLUTC shall act as recommending body when it is larger than 5 hectares and it is highly restricted from
conversion or it requires inter agency input.
MARO Certification is REQUIRED.

PROTEST:

- 30 days from posting or 15 days from ocular inspection

- Where? PARO. Personal Service not by mail.

GROUNDS FOR PROTES/DENIAL OF APPLICATION

- Area is non negotiable for conversion

- Adverse effects or displacement of affected community
- Misrepresentation or concealment of facts in the application
- Illegal or premature conversion
- Existence of proof that conversion was used to circumvent CARP
- Land sought to be converted has not ceased to be economically feasible and sound for
agricultural purposes, locality has not become urbanized, land will not have greater value if
converted
- Violation of laws and rules

PROCEDURE:

- Application form from RCLUPPI/CLUPPI

- Public Notice Billboards
- Fill Up application form
- Furnish MARO
- MARO transmit to PARO
- MARO shall conduct investigation
o If MARO fails to act within 20 days from receipt, applicant shall notify the PARO.
 PARO shall compel MARO
 If MARO still refuses, PARO will conduct him/herself.
- R/C conduct ocular inspection

BOND: required so that no premature conversion (2.5% of zonal value) upon application.

- Applicant may, in lieu of cash bond, post a surety bond issued by the GSIS equivalent to 15% of
total zonal value.

DISTURBANCE COMPENSATION: not less than 5x the average of gross harvest during the last 5 preceding
calendar years.

CONVERSION TO HOMELOT:
 - Applicant owns the lot
- Intends to establish dwelling place for himself
- Area to be converted does not exceed 500 sq/m
- Purely residential use
- Documentary Requirements
o Proof of payment of filing fee
o Application for conversion
o CTC of OCTor TCT certified by the ROD not less than 30 days prior to date of filing
o In case of untitled land
 Certificate from the DENR CENRO that land is alienable and disposable
 Certification from the DENR CENRO or CLERK OF COURT that there are no
adverse claimants
- PROCEDURE
o Application to PCLUPPI or CLUPPI
o R-CLUPPI to MARO/PARO
o MARO checks status and posts notice, sends report to PARO
o PARO shall send notice of ocular inspection
o PARO submit report to PC

ISSUANCE OF CONVERSION ORDER

- Conditions
o No development until all government clearance has been issued
o Performance bond within 15 days from receipt
o Annotate order within 3 days (ROD)
o Transmit within 60 days the annotated title to R/CLUPPI
o Payment of disturbance compensation
o Within one year
 Landowner or developer shall commence development
 No development shall extend beyond 5 years from issuance of Order
o Landowner / representative shall allow officials of DAR free and unhampered access for
purpose of monitoring compliance
o Landowner or new owner shall not change use to other use
o LO shall submit quarterly reports
o Grant of conversion order alone shall not be ground for eviction.
 Remedy file proper court action
o DAR reserves right to revoke conversion order upon valid grounds

GROUNDS FOR REVOCATION OF CONVERSION ORDER

- Lack of jurisdiction of the approving authority

 - Misrepresentation or concealment of material facts in the application
- Non compliance with the conditions of the conversion order
- Non compliance with the agreement of disturbance compensation
- Use other than that approved in the conversion order
- Serious violations of agrarian laws

ILLEGAL CONVERSION – conversion with intent to circumvent agrarian laws

PREMATURE CONVERSION – development activity the result of which is to modify the characteristics of
agricultural land and makes it non suitable for agricultural purposes without approved conversion order
despite the pendency of application for conversion

UNAUTHORIZED CONVERSION – changing of current use of land other than that allowed under
Conversion Order

Any person found guilty of premature or illegal conversion under RA 8435 shall be penalized, in
accordance with Section 11 thereof, with imprisonment of two (2) to six (6) years, or a fine equivalent to
one hundred percent (100%) of the government's investment cost, or both, at the discretion of the
court, and an accessory penalty of forfeiture of the land and any improvement thereon.

STREAMLINE CONVERSION (DAR A.O. 1 S. 2019)

- All applications must be personally filed by applicant or his duly authorized representative (SPA
or Board Resolution or Secretary Certificate)
- Application must be verified
- No acceptance of application unless complete
- If ARB, must have fully paid
- Electronic Copy now accepted in lieu of the Certified True Copy

- Reclassification is different from conversion (LGU)

o Reclassification
 Act of specifying how agricultural land shall be utilized for non-agricultural uses.
o Conversion
 Act of changing actual use of agricultural land into other uses as approved by
DAR
o Agricultural land which has been reclassified DOES NOT IPSO FACTO allow land owner to
use the same for said purpose.
- Certificate of Reclassification from HLURB in application for conversions shall only be required if
the landholding is located in Highly Urbanized or Independent Component Cities and conversion
is from agricultural to non-agricultural
 - In lieu of HLURB Certification, Sangguniang Bayan/Lunsod Zoning Ordinance and Sangguniang
Panlalawigan Resolution approving such ordinance is needed for conversions.
o In both cases, LGU must secure Certificate of Eligibility for Reclassification from
Department of Agriculture (DA AO1 S2017) must also be attached. (NO LONGER
APPLICABLE AS OF DAR AO 3, S 2021)
- MARO has 3 days upon receipt of application to determine completion of work (MARO
CERTIFICATION)
o Absence: CARPO, PARO
- NOTICE OF ONSITE INSPECTION INVESTIGATION
o 3 DAYS FROM DATE OF FILING
o ONSII CONDUCTED BY
 LAND USE CONVERSION DIVISION
 REGIONAL LAND USE COMMITTEE
 WITHIN 5 DAYS FROM NOTICE

AMENDMENTS (AO 3, SERIES OF 2021)

- Special Undertakings

o Lands must not be irrigated or irrigable

o To the RD if it is not more than 5 hectares

o NO NEED TO GO THRU MARO

o ZONING CERTIFCATION FROM HLURB NO LONGER NEED

o NO POST APPLICATION BOND REQUIRED

 o If approved, applicant must develop within 5 years from the grant

o Disturbance compensation required

o Yearly development plan required

DAR MC 54-1993

SEC. 4. Use of the comprehensive land use plans and ordinances as primary reference documents in
land use conversions. – Pursuant to RA 6657 and EO 129-A, actions on applications for land use
conversions on individual landholdings shall remain as the responsibility of DAR, which shall utilize as
its primary reference documents the comprehensive land use plans and accompanying ordinance passed
upon and approved by the LGUs concerned, together with the National Land Use Policy.