Alternative Land Acquisition for Public Use Act

Senate no Dilice at the weale TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session AUG -4 P1:16 SENATE RECONCD B S. No._ Introduced by Senator Loren Legarda AN ACT ESTABLISHING A COMPREHENSIVE FRAMEWORK FOR THE ACQUISITION OF LAND FOR PUBLIC PURPOSES, INCLUDING INFRASTRUCTURE DEVELOPMENT, THROUGH MONETARY AND NON-MONETARY MEANS, PROVIDING FLEXIBLE MODES OF POSSESSION AND COMPENSATION, AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE Efficient and timely acquisition of land is fundamental to the success of government programs and development projects, including infrastructure, housing, disaster resilience, environmental protection, and social service delivery. Public land acquisition enables the State to advance national priorities, improve quality of life, and ensure critical services reach all communities. At the heart of this process is the constitutional right of landowners to just compensation. Respecting this right promotes public trust, encourages voluntary cooperation, and reduces disputes that can otherwise delay projects and increase government costs. To be effective, land acquisition processes must uphold due process while remaining flexible, transparent, and equitable. Despite the availability of various acquisition modes under Republic Act No. 10752, many government agencies continue to rely heavily on expropriation. According to data from the Department of Public Works and Highways (DPWH), 90 percent of ROW acquisitions have been carried out through expropriation, while

only 10 percent have been completed through negotiated sales.! This approach, while legally valid, often leads to prolonged litigation and resistance from landowners who feel inadequately compensated or burdened by procedural requirements. Even negotiated sales, donations, and other conventional methods frequently encounter challenges, such as valuation disagreements, unclear ownership, or delays in documentation. These issues result in project delays, higher implementation costs, and inefficient public spending. This bill seeks to establish a comprehensive and responsive legal framework for the acquisition of land for public purposes. It aims to provide government agencies with a broader set of lawful and practical instruments to secure possession and access to land-without compromising the constitutional rights of property owners or delaying the implementation of critical national and local development projects. To this end, the bill institutionalizes alternative modes of acquisition such as usufruct, conditional sale, contract to sell, and long-term lease, complemented by mechanisms for upfront compensation, escrow arrangements, and flexible settlement options. These tools are designed to promote transparency, fairness, and voluntariness, while ensuring the government's ability to act efficiently in pursuit of public purpose. In recognition of the fact that landowners voluntarily contribute their property-often their primary source of livelihood-for a higher socio-economic purpose, this bill also provides for meaningful benefits beyond just compensation. These include the waiver of national taxes directly related to the transaction and financial assistance to reduce disruption in their daily lives. Such measures acknowledge the economic loss and inconvenience borne by affected individuals, while reinforcing a culture of trust, equity, and shared responsibility between the State and its citizens. * Page 2.1-1 DPWH Right of Way Acquisition Manual (December 2017)

By enacting this measure, the State will be better equipped to conduct equitable, streamlined, and cooperative land transactions, reduce legal disputes, and accelerate the timely delivery of infrastructure, environmental, and social development projects. In view of the foregoing, the urgent passage of this bill is sought. LOREN LEGARDA

Senate voffice of the cretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 25 AUG -4 P1:16 SENATE RECENT ED BY S. No. 796 Introduced by Senator Loren Legarda AN ACT ESTABLISHING A COMPREHENSIVE FRAMEWORK FOR THE ACQUISITION OF LAND FOR PUBLIC PURPOSES, INCLUDING INFRASTRUCTURE DEVELOPMENT, THROUGH MONETARY AND NON-MONETARY MEANS, PROVIDING FLEXIBLE MODES OF POSSESSION AND COMPENSATION, AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Alternative Land

2 Acquisition for Public Use Act."

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

promote the timely, efficient, and equitable acquisition of private and public lands necessary for public use. Such use shall include, but not be limited to, infrastructure 6 development, environmental protection and conservation, delivery of social services, 7 national defense, and other activities essential to national development and public 8 welfare. The State shall uphold the constitutional guarantee of due process and just compensation, as enshrined in Article III, Section 9 of the 1987 Constitution, which provides that no person shall be deprived of property without due process of law, nor shall private property be taken for public use without just compensation. Nothing in this Act shall be construed to diminish, impair, or derogate from such fundamental rights.

To this end, the government shall encourage voluntary, negotiated, and 2 mutually beneficial modes of acquisition, and shall adopt measures to prevent 3 unnecessary delays arising from legal, administrative, or procedural barriers. All 4 acquisitions undertaken pursuant to this Act shall be governed by the principles of 5 transparency, fairness, accountability, and good faith, and shall be exercised strictly 6 in furtherance of legitimate public purposes.

Sec. 3. Scope and Application. - This Act shall apply to all acquisitions of land,

including ownership and possessory rights, by the national government, local 9 government units (LGUs), government-owned or controlled corporations (GOCCS), and government instrumentalities for public purposes.

Sec. 4. Definition of Terms. - For the purpose of this Act, the following terms

shall be defined as follows: (a) Just Compensation refers to the full and fair monetary or non-monetary equivalent of the property acquired for public use. It shall include the assessed value of the land, structures, crops, trees, and improvements thereon, as well as any consequential damages, relocation, or disturbance costs incurred by the property owner. Just compensation may also be satisfied through alternative modes such as land swaps or other legally recognized forms of property exchange; (b) Land Swaps refer to the transfer of ownership involving private land and government-owned property of equivalent value, viability, and suitability. This shall include, but not be limited to, foreclosed assets, idle parcels, or real properties held in trust or inventory by national government agencies, GOCCs, or local government units; (c) Contracts Granting Immediate Possession refer to legally binding agreements between the government and the landowner, such as usufruct, long-term lease, conditional sale, or contract to sell, which authorize the government to take possession, access, and use of the subject property for a defined public purpose, prior to the completion of the formal transfer of ownership; and (d) Disruption, Inconvenience, or Displacement refers to any disturbance, hindrance, or forced alteration in the use, access, or occupancy of land

or real property as a resuit of government land acquisition, possession, or project implementation. This includes loss of income or access, partial or full vacating of premises, or other non-physical but material impacts that interfere with the enjoyment, use, or function of the property.

Sec. 5. Modes of Acquisition. - The government, including its departments,

6 agencies, instrumentalities, GOCCS, and LGUs, may acquire private or public land, 7 including rights and interests therein, for public purposes through any of the following modes: (a) Donation - The voluntary and uncompensated transfer of ownership or use of land or real property from a private or public entity to the government, duly executed through an instrument of donation and accepted by the implementing agency; (b) Negotiated Sale - A consensual agreement between the government and the property owner for the purchase of land or real property at a mutually agreed price, supported by sufficient documentation and valuation reports; (c) Expropriation - The compulsory acquisition of private property through judicial proceedings in accordance with the power of eminent domain, subject to the payment of just compensation as determined by the court; (d) Contracts Granting Immediate Possession - Agreements such as usufruct, conditional sale, contract to sell, long-term lease, or other contractual arrangements that allow the government to take immediate possession, access, and use of the land for a defined public purpose, prior to or pending the completion of ownership transfer, subject to conditions set forth in this Act; (e) Land Swaps - The exchange of privately owned land with government- held properties of equivalent value and suitability, including idle, reserved, or foreclosed lands held by national government agencies, GOCCS, or LGUs, as a form of non-monetary just compensation. The implementing agency shall bear the primary responsibility of identifying, disclosing, and offering eligible government properties for land swap,

subject to the principles of transparency, fairness, and informed consent of the landowner. A centralized repository of government properties eligible for land swap shall be established and maintained in accordance with rules to be issued by the Department of Economy, Planning, and Development (DEPDev) through its Infrastructure Committee. The Implementing Rules and Regulations (IRR) shall prescribe the procedures, disclosure requirements, valuation standards, and publication protocols governing such land swap arrangements; and (f) Other Legally Permissible Means - Such other modes of land acquisition as may be expressly authorized by existing laws, administrative issuances, or jurisprudence, excluding administrative forfeiture or other coercive mechanisms not intended for public use acquisition. This may include, but is not limited to, tax delinquency sales, voluntary surrender, land banking, or reversion to the State, provided such means are consistent with constitutional guarantees of due process and just compensation. For purposes of this Act, land acquisition shall be construed to include the procurement of rights over both surface and subsurface areas of land, including air rights, provided that the intended use is for a clearly defined public purpose and complies with constitutional and statutory requirements. In all modes of land acquisition under this Act, the landowner shall have the right to submit a counteroffer proposing an alternative mode or set of terms for securing possession or transferring ownership of the property, provided that the alternative arrangement remains consistent with the defined public purpose and conforms with applicable laws and regulations. Such counteroffers may include alternative contractual arrangements, compensation mechanisms, or timing of transfer, among others. The implementing 29 agency shall give due consideration to these proposals in good faith, and shall assess 30 their viability based on legal, technical, and public interest criteria.

The IRR shall define the procedures and timelines for the submission, 2 evaluation, and resolution of landowner-initiated counteroffers, ensuring that the 3 negotiation process remains transparent, responsive, and efficient.

Sec. 6. Contracts Granting Immediate Government Possession. - The

5 government, through its implementing agencies, may enter into legally binding 6 agreements with landowners that allow the State to immediately possess, access, and 7 utilize real property for a defined public purpose, even prior to the completion of the formal transfer of ownership, subject to the following conditions: (a) The contract shall expressly authorize the government's possession, use, and improvement of the property for a period not exceeding fifty (50) years, unless earlier terminated or extended as may be provided by law or mutual agreement; (b) The government shall pay the landowner, upon execution of the contract, an amount equivalent to at least eighty percent (80%) of the negotiated purchase price of the affected land, inclusive of the value of structures, crops, trees, and other improvements thereon; and (c) The transfer of ownership of the property to the Republic of the Philippines shall take effect only upon the submission by the landowner of complete legal documentation, including but not limited to the certificate of title, updated tax declarations, and all other required clearances. The remaining balance of the negotiated price shall be released upon completion of such documentation and execution of the corresponding deed of absolute sale or other appropriate instrument of conveyance.

Sec. 7. Flexible Compensation Mechanisms. - In cases where legal ownership

of the land or real property is unsettled due to ongoing succession proceedings, unresolved inheritance issues, or the absence of a judicial or extrajudicial determination of rightful ownership, the implementing agency may, for purposes of ensuring timely government possession and compliance with the requirement of just compensation, adopt any of the following mechanisms: (a) Escrow Deposit - The implementing agency may deposit the initial compensation amount in an interest-bearing escrow account with a

government financial institution, subject to the condition that such funds shall be released only to the parties adjudged or declared as rightful claimants through final and executory judicial or extrajudicial settlement of the estate; (b) Judicial Administration - The implementing agency may file an appropriate petition before a court of competent jurisdiction for the appointment of an administrator or executor to receive and manage the compensation on behalf of the estate, pending the final settlement of ownership or succession claims; (c) Proportional Distribution Agreement - In cases where the known heirs, co- owners, or claimants are identifiable and willing, the implementing agency may enter into a written agreement with said parties providing for the proportional and conditional distribution of the compensation based on equitable shares or interim arrangements, subject to applicable laws on succession and co-ownership; and (d) Other Legally Permissible Mechanisms - The implementing agency may utilize such other mechanisms as may be authorized under existing laws, rules, or jurisprudence that allow the conditional deposit or payment of just compensation, provided that these do not violate the rights of the lawful property owners and are subject to post-validation or audit.

Sec. 8. Benefits to Landowners. - In recognition of the financial, logistical, and

administrative burdens associated with the relocation or transfer of land ownership for public purposes, this Section provides for additional compensation, tax relief, and transaction support to landowners affected by government land acquisition. (a) Landowners who are required to vacate or relocate as a direct result of land acquisition under this Act shall be entitled to a one-time, lump-sum relocation assistance, which shall cover: 1. Transfer Costs - Reasonable expenses directly incurred in the process of relocation, including but not limited to moving and hauling costs, legal and notarial fees, documentary preparation, and administrative charges; and

2. Relocation Support - Temporary housing assistance, rental subsidies, or other equivalent forms of support as may be determined by the implementing agency, in consultation with the Department of Human Settlements and Urban Development (DHSUD) or other relevant agencies. (b) Landowners who experience disruption, inconvenience, or displacement as a result of government land acquisition shall be entitled to additional compensation for such disturbance. The combined total of the amounts granted under subsections (a) and (b) shall not exceed ten percent (10%) of the total negotiated or court-determined just compensation for the affected property. (c) Landowners who enter into a negotiated sale, donation, land swap, or any other lawful contractual arrangement granting the government immediate possession or ownership shall be entitled to the full condonation of all national tax liabilities directly arising from or related to the transfer of the subject property to the government. The condonation shall cover the principal amounts of capital gains tax, estate tax, donor's tax, value-added tax (if applicable), including all associated surcharges, interest, and penalties, whether incurred prior to or during the course of the transaction. Real property tax (RPT) liabilities and arrears shall remain the responsibility of the landowner and shall not be subject to condonation under this Act. (d) The implementing agency, or in the case of a public-private partnership, the private project proponent, shall be responsible for the payment of all lawful charges necessary to complete the transfer of title or registration of contractual rights in favor of the government. These charges include, but are not limited to, documentary stamp tax, transfer tax, registration fees, and notarial fees. The specific guidelines for the computation, release, and administration of the foregoing benefits shall be prescribed in the Implementing Rules and Regulations (IRR) of this Act.

Sec. 9. Possession of Subsurface Areas. - For government infrastructure

2 projects requiring subsurface installations such as tunnels, pipelines, floodways, or 3 utility corridors, the government or its authorized representatives shall have the right 4 to access and use subsurface portions of land, provided such access occurs at a depth 5 of at least twenty-five (25) meters below the natural surface. This access shall not be deemed to impair the right of the surface owner, 7 provided that no material damage or disturbance is caused to surface use. In cases 8 where such subsurface works result in structural damage or loss of use, the property g owner shall be entitled to appropriate compensation, as determined by the 10 implementing agency in accordance with existing laws.

Sec. 10. Applicability to Ancestral Domains and Agrarian Reform Lands. -

Nothing in this Act shall be construed to authorize or substitute for the processes and requirements governing the acquisition or transfer of ancestral domains or lands covered by agrarian reform laws. The acquisition of such lands shall be subject to the provisions of Republic Act No. 8371 or the "Indigenous Peoples' Rights Act of 1997" (IPRA), Republic Act No. 6657 or the "Comprehensive Agrarian Reform Law" (CARL), and other relevant laws. In particular: 1. For ancestral domains and lands of Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs), the Free and Prior Informed Consent (FPIC) of the affected community shall be secured in accordance with NCIP guidelines. 2. For agrarian reform lands and lands covered by Certificates of Land Ownership Award (CLOAs), appropriate clearance from the Department of Agrarian Reform (DAR) shall be obtained before acquisition.

Sec. 11. Dispute Resolution Mechanism. - To ensure efficient and non-

adversarial resolution of disputes arising from land acquisition under this Act, the Implementing Rules and Regulations (IRR) shall establish an administrative grievance mechanism accessible to affected landowners, heirs, or other stakeholders. Where appropriate, disputes may be referred to the Office for Alternative Dispute Resolution (OADR) or to accredited mediators, in accordance with Republic Act No. 9285 or the "Alternative Dispute Resolution Act of 2004."

Sec. 12. Post-Acquisition Monitoring and Audit. - To uphold transparency and

2 accountability, the Commission on Audit (COA) shall have the authority to conduct 3 random or targeted compliance reviews and audits of land acquisitions made under 4 this Act, including the use of compensation mechanisms, adherence to procedures, 5 and documentation of just compensation. 6 The Department of Economy, Planning, and Development (DEPDev), through its 7 Infrastructure Committee, may also undertake periodic evaluations of the implementation of this Act and publish summary reports for public disclosure.

Sec. 13. Authority to Promulgate Rules and Guidelines. - Within ninety (90)

10 days from the effectivity of this Act, the Department of Justice (DOJ), in coordination with the DEPDev through its Infrastructure Committee, the Department of Public Works and Highways (DPWH), and other relevant agencies, shall promulgate the necessary rules and regulations for the effective implementation of this Act. The IRR shall include standard contract templates, valuation guidelines, procedures for escrow and land swaps, and grievance redress mechanisms. Drafting of the IRR shall involve public consultation with representatives from civil society, landowner associations, LGUs, and sectoral stakeholders. Within the same ninety (90)-day period, the DOF, through the BIR, shall issue the specific rules and regulations governing the implementation of the condonation of tax penalties, surcharges, or interest authorized under this Act. Such rules shall define the procedures, documentation requirements, and eligibility criteria for landowners to avail of the condonation, in accordance with applicable tax laws and regulations.

Sec. 14. Technical Support and Capacity-Building. - The DEPDev, in

coordination with the DOJ and the DPWH, shall lead the development of standardized model contracts, operational guidelines, and training programs to assist implementing agencies in the use of alternative land acquisition mechanisms under this Act. A technical support unit may be created within DEPDev's Infrastructure Committee to provide legal, financial, and operational advisory services to requesting agencies and LGUs. Funds for capacity-building, legal review, and stakeholder engagement shall be included in the annual budgets of concerned agencies and may be supported through official development assistance (ODA) or public-private partnership (PPP) modalities.

Sec. 15. Appropriations. - Such sums as may be necessary for the

2 implementation of this Act shall be included in the annual General Appropriations Act.

Sec. 16. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder shall remain in full force and effect.

Sec. 17. Repealing Clause. - All laws, decrees, orders, and issuances

6 inconsistent with this Act are hereby repealed or modified accordingly. Republic Act 7 No. 10752 is hereby superseded insofar as it is inconsistent with the provisions of this 8 Act.

Sec. 18. Effectivity. - This Act shall take effect fifteen (15) days after

10 publication in the Official Gazette or in at least two (2) national newspapers of general circulation. Approved,