PRESCRIBING THE LAND TENURE SYSTEM FOR THE TONDO FORESHORE AND DAGAT-DAGATAN URBAN DEVELOPMENT PROJECT.

• Number: Presidential Decree No. 814
• Sections: 13

Preamble

WHEREAS, the government recognizes the need to rationalize

the use of land particularly in urban areas to insure its optimum

utilization for the welfare of the greatest number of people;

WHEREAS, it is the declared policy of government to promote

the well being of the people by undertaking a program of development

which shall establish communities where people can live with dignity in

healthful environmental conditions;

WHEREAS, the Tondo Foreshore is the largest squatter and

slum colony in the Greater Manila Area where people live in substandard

conditions incompatible with the goals of the New Society;

WHEREAS, the government is determined to improve the quality

of life of the people in the Tondo Foreshore by preparing and

implementing a realistic, comprehensive, and integrated plan for its

development;

WHEREAS, the government is aware that the land issue is

central in the Tondo Foreshore Project whose resolution shall provide a

meaningful and lasting solution to the situation in the project area;

WHEREAS, Republic Act 1597, as amended, and other related

laws specifically governing land use in the Tondo Foreshore Area have

been found unrealistic and inadequate to bring about a harmonious,

meaningful and lasting solution to the squatter and slums problem long

obtaining in the Tondo Foreshore area;

WHEREAS, the Tondo Foreshore Development Authority, and its

legal successor, the National Housing Authority, have prepared a master

plan for the Tondo Foreshore which provides for the upgrading of sites

and services in the Tondo Foreshore and the development of Dagat-dagatan

into a resettlement area with residential, commercial, and industrial

components, the whole project now known as the Tondo Foreshore and

Dagat-dagatan Urban Development Project;

WHEREAS, there is a need to prescribe a new and reaistic

land tenure system for the Tondo Foreshore area and Dagat-dagatan

resettlement site in order to effect the proper implementation of the

physical and socio-economic development program therein;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution do

hereby decree and order the following:

Section 1

SECTION 1. The Tondo Foreshore and Dagat-dagatan Urban

Development Project

The Tondo Foreshore and Dagat-dagatan Urban Development Project,

hereinunder referred to as the "Project" for which the land tenure

system prescribed by this Decree is applicable, shall comprise the Tondo

Foreshore, Vitas, Dagat-dagatan and its adjacent areas which have been

designated as "Planned Areas for New Development (PLAND)" with specific

technical boundaries under Letter of Instruction 299 dated 29 July 1975

and over which the Tondo Foreshore Development Authority and its

successor, the National Housing Authority hereinafter referred to as the

"Authority", have general jurisdiction and control.

Section 2

SEC. 2.

Land Tenure System

The Land Tenure System prescribed for the Project shall consist

of two modes of residential land ownership and disposition, to wit:

Freehold with restrictions

Freehold with restrictions will be applied only to titled lots and

claims with "vested rights" such as those with final Deeds of Sale,

Agreements to sell, and other legal claims which may be honored by the

Authority, provided, however, that owners of these legal rights may opt

for leasehold with option to purchase arrangement.

Leasehold with or without the option to purchase

Leasehold with option to purchase shall be applied to those lands

which are untitled, vacant, unclaimed and without vested rights.

Section 3

SEC. 3. Citizens' Committee

For the purposes of this Decree, a Citizens' Committee

consisting of five (5) members shall be formed in each barangay within

the Project Area to perform the following functions:

Process request for transfer of residential land rights and

sub-letting of dwelling units and structure within the Project Area

based on policies, rules and regulations of the Authority.

Submit to the Authority recommendations on such transfers and

sub-letting for review and approval.

The Barangay Chairman in each barangay shall automatically be a

member of the Citizens' Committee. The four (4) other members shall be

elected for a term of one (1) year by the members of the barangay in a

general meeting. The Authority in coordination with other government

entities, specifically the Department of Local Government and Community

Development shall prescribe and implement the necessary rules and

regulations for the conduct of the barangay election. The members of the

Citizens' Committee shall elect from among themselves a Chairman who

shall convene the Committee to discuss business on hand.

Section 4

SEC. 4.

Freehold with Restrictions

The sale and/or disposition of

land in the Project Area shall be subject to the following conditions:

Except by hereditary succession, land under freehold right shall

not be transferred, alienated, conveyed, or otherwise disposed of by any

mode to any person who does not meet the criteria (based on income,

multiple ownership, conformance to law, etc.) to be set by the Authority

and implemented by Citizens' Committee to be created under Section 9 of

this decree whose recommendation on land transfer shall be subject to

review and approval by the Authority.

The use, occupancy, and development of land shall be subject to

the general regulations and control of the Authority according to its

approved development plan.

Freehold land with the Project shall be assessed a fee covering

development cost which fee shall be amortized on a perpetual basis.

Section 5

SEC. 5. Leasehold with or without the Option to Purchase

The lease of land with option to purchase shall be subject to the

following conditions:

Lease grants will be for a period of 25 years renewable for

another 25 years at the option of the lessee. Anytime after a period of

five years of continuous occupancy, and at the option of the lessee, the

lessee may purchase the land at market value assessed at the time the

application to purchase is submitted to the Authority. A specified

percentage of the lease payments made up to the time of purchase shall

be credited against the purchase price. After full payment, the

leassee shall own the land with the restrictions provided for in Section

4 hereof annotated in the certificate of ownership and, the land tenure

arrangement reverts to freehold with restrictions. The Authority

shall determine the lease amount which shall cover all development costs

and may contain a provision for a specified gradual increase over time.

The conditions imposed on the sale of land in the Project are

likewise applicable on the lease of land. However, lease rights

may be transferred or sold to another person any price agreed upon by

the lessee and the transferee, provided that the Citizen's Committee

shall approve the transfer and determine the qualifications of the

transferee according to a prescribed criteria, whose recommendation

shall be subject to review and approval by the Authority.

The rules and regulations to implement leasehold without option to

purchase shall be prescribed by the Authority, provided that in its

implementation the Citizen's Committee shall exercise its recommendatory

powers specified in Section 3 of this decree subject to review and

approval by the Authority.

Section 6

SEC. 6. Sub-letting of

Dwelling Units and Structures

Sub-letting of dwelling units

and structures on lands under freehold and leasehold shall be subject to

recommendation of the Citizen's Committee and approval of the

Authority. It is understood that the Authority will not unreasonably

withhold the approval of transfer of land to persons qualified under

criteria referred to in Section 4.

Section 7

SEC. 7. Commercial and Industrial lands

Commercial and Industrial lands shall be disposed of by sale

and/or lease. The conditions of sale and lease shall be prescribed and

implemented by the Authority.

Section 8

SEC. 8. Payment of real property taxes

All lessees and holders of freehold titles shall pay normal real

property taxes to the local government in return for normal service

from the latter.

Section 9

SEC. 9. Implementation and Administration

The Authority shall implement and administer the land tenure

system in the project.

Section 10

SEC. 10. Repealing Clause

Any provision of law, decree, executive orders, ordinances,

rules and regulations inconsistent herewith are hereby repealed, amended

and modified accordingly.

Section 11

SEC. 11. Separability Clause

If for any reason, any section or provision of this Decree is

declared to be unconstitutional or invalid, the other sections or

provisions hereof, which are not affected thereby shall continue in full

force and effect.

Section 12

SEC. 12. Effectivity This Decree shall take effect

immediately.

Done in the City of Manila, this 17th day of October, in the

year of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ROBERTO V. REYES

Acting Executive Secretary