PHILIPPINES Floradema C. Eleazar Land Equity Technology Services (LETS, Inc)
LGAF Philippines Country Study Key Findings and Recommendations Legal and Institutional Framework Land Use Planning and Management Property Valuation and Taxation Expropriations Public Provision of Land Information Land Dispute Resolution Large Scale Land Acquisition Forestry Suggestions on Way Forward
Legal and Institutional Framework Indicators assessed: Recognition of rights Enforcement of rights Mechanisms for recognition Restrictions on rights Clarity of mandates Equity and non discrimination in land policies
Legal and Institutional Framework Recognition of Rights: Strong legal framework for rural land tenure rights recognition (A); but does not have no policy in recognition of informal settler rights in urban areas (B) Strong legal framework and procedures for recognition of both urban group rights in informal areas and rural group rights (A) While opportunities for tenure individualization exist in both urban and rural areas, these are costly and takes a long time to complete (B)
Legal and Institutional Framework Enforcement of Rights There is a policy framework for surveying/mapping and registration of claims on communal land; however, its coverage is still limited; with 46% of estimated extent of ancestral domains issued with CADTs (B) While existing policies recognize ownership rights of women; forms and records do not reflect gender data (c) Condominium law provides for appropriate management of common property (A) Policies and procedures allow for disturbance compensation in land use changes owing to rural to urban conversion (A); but not in the establishment of national parks or protected areas (B)
Legal and Institutional Framework Enforcement of Rights Huge proportion of untitled urban/residential and rural properties (estimated at 11M parcels) - C constrain the effective functioning of the land market and affects investments in property development. exposes the property owners, particularly the poor to undue risks. Provide titling a boost: Undertake in depth review of agency records to provide better estimates Priority to urban/residential properties which are easier to adjudicate, occupants have more complete records, procedures are simpler, and properties are more highly valued. Contribute to completing the property tax roll of LGUs. Consider streamlined procedures for titling tested under LAMP1 and LAMP2, which could be rolled out in partnership with LGUs, which also stand to benefit most through improved ability to collect property taxes.
Legal and Institutional Framework Mechanisms for Recognition Good use of non documentary forms of evidence to recognize rights (B) Policies in place to recognize long term, unchallenged possession (A) Formal fees for first time registration using Free Patent are affordable (A); but more costly under Miscellaneous Sales (B) and Judicial Mode (D) There are still informal fees paid for first time registration, but the level is not as high as formal fees (B); however, the practice is very common (C) Legislation exists to formally recognize long term unchallenged possession (A) through CA 141, RA 636, IPRA, and RA 10023) Formalization of residential housing is very costly, and entails too much delays (C) leading to growth in informality
Legal and Institutional Framework Restrictions on Rights There are restrictions on urban land use, ownership and transferability that are justified, but are not enforced; thereby they do not achieve their objectives (B) Restrictions on rural land use, ownership and transferability are justified for the most part on the basis of public interest (A)
Legal and Institutional Framework Clarity of Institutional Mandates There is inadequate separation of policy formulation, implementation and arbitration roles in key land agencies (C) There is minimal vertical overlap within key agencies, and between national and local government agencies (B) There are strong horizontal overlaps in mandates of key land agencies, (C) affect efficiency in service delivery, Prevents access to complete land records, generates confusion among the public, Results in long standing disputes; and provides fertile ground for syndicates and informal payments. Most of the victims are the poor and uneducated who are not familiar with procedures and laws.
Legal and Institutional Framework Land information and data of agencies do not have common reference system DENR survey and parcel numbers LRA title numbers Assessors Office PIN Difficulty in sharing of information; creates confusion and difficulties in access by the public Records unreliable; not up to date
Legal and Institutional Framework Equity and Non Discrimination in Land Policies The Philippines has a clear land policy and existing mechanisms allow for public participation in land policy formulation (A) Land policies incorporate some equity objectives but these are not regularly and meaningfully monitored (C) Except for CARP, there are serious inadequacies in budget, resources and institutional capacity to implement land policies (C) There are regular and public reports indicating progress in policy implementation (A)
Legal and Institutional Framework- Recommendations Short Term Actions: LAM agencies to develop uniform data standards so that land records management, particularly retrieval and storage can be harmonized Institutionalize policies for regular and meaningful monitoring of progress and impact of land policies into equity goals/objectives (NEDA/PIDS, or appropriate institution) More comprehensive study on extent of informal fees involved in first time registration Generate better estimates of untitled properties to improve tenure security planning Accelerate titling of untitled properties, and mapping and registration of ancestral domains DENR to review policies and appraisal of urban lands to facilitate titling of other urban lands under Miscellaneous Sales Develop capacities and provide resources to institutions in charge of implementing land policies NCIP; DENR (titling and cadastral surveys); LGUs through LGU led LAM innovations
Legal and Institutional Framework Recommendations Complex processes for formalization of urban housing (associated with records not up to date, not reliable) Consider alternative modes of formalization e.g., interim tenure in light of refusal to re locate Strengthen and fast-track the Community Mortgage Program; encourage LGUs to develop comprehensive shelter plans and to engage in urban housing for the poor and the underprivileged Review restrictions on rent, ownership, plot sizes, land use and transferability to determine if they meet objectives
Legal and Institutional Framework- Recommendations Medium to Long Term Actions: Remove restrictions on transfers and conveyances in FP agricultural (amendment of CA 141) Refile LARA Bill, and work for its passage Codify land laws to address preponderance of tenure rights and recognition processes by various agencies
Land Use Planning and Management Indicators Assessed: Transparency of land use restrictions Efficiency of land use planning Speed and predictability of issuance of residential building permits
Land Use Planning and Management Transparency of land use restrictions In urban areas, public participation in CLUPs is not consistently practiced, and usually at the end of the process (B) In rural areas, there are varying degrees of public input in land classification, forest boundary delineation, forest and use planning, and PA management planning (B) Provisions in the LGC to allow public capture of benefits from changes in permitted land use is not implemented (sec 240-245) (C) LGUs are not proactive in land use planning, changes in land use planning is mainly driven by national infrastructure projects, investments by private sector (B)
Land Use Planning and Management Efficiency of land use planning Land use planning in major cities has been ineffective in controlling the pace, direction and intensity of urban development (C) While there have been active development of new housing units in the largest city, these mainly respond to demand and investments rather than meeting housing needs. Thus, there is still growing informality; urban planning is still unable to cope with urban growth (C) There are wide variations between allowed and actual residential plot sizes due to lack of monitoring (C) There are a large proportion of land (forests, foreshore), whose actual use are not in line with use plans (C)
Land Use Planning and Management Speed and Predictability of enforcement of restricted land use Applications for building permits for residential dwellings are affordable and processed in a non discretionary manner (A) Applications for building permit are decided within three months (A)
Land Use Planning and Management - Recommendations On non implementation of betterment taxes (special levy) BLGF to make pilot studies and prescribe specific guidelines on special assessments Institutionalize donation as alternative application of worsement compensation and betterment levy (LGU Ordinance) Develop methodologies for monitoring land use change in urban and rural areas Actively support regular inclusive and participatory CLUP updating, mandate regular consultation with LGUs on national infrastructure projects to align national and local land use plans Support passage of National Land Use Act
Property Valuation and Taxation Indicators Assessed Transparency of Valuation Tax collection efficiency
Property Valuation and Taxation Transparency of Valuation There are clear guidelines for use of market based valuation but LGUs do not use these and/or have n capacities to undertake LGUs do not regularly update their SMVs, in some LGUs as far back as 15 years LGU assessed values are way below the true market values sometimes the difference is 1000% RATING B Property tax rolls (zonal values) are publicly available online; LGUs SMVs only in hard copies - A
Property Valuation and Taxation Tax Collection Efficiency LGUs grant exemptions beyond what are allowed (C) Most of LGUs tax maps are not updated; with a gap of between 20-50% (C) Property tax collection is low average of 59% for 2003-2009 (C) LGUs are highly dependent on IRA 80% for provinces 76% for municipalities 43% for cities
Property Valuation and Taxation Use of inappropriate valuation methodologies, lack of regular updating of LGUs SMVs, poor collection efficiency, unclear policies on LGU authority to grant exemptions Effects: low collections from property taxes by LGUs thereby perpetuating their dependency on IRA Affects determination of just compensation for properties expropriated by LGUs
Property Valuation and Taxation - Recommendations Short term: Support LGUs to develop capacities to use market based valuation, adopt property tax systems and formulate local policies to improve revenue generation BLGF/DoF to review authority granted to LGUs and proactively advice of provisions in law Implement sanctions for erring Treasurers Study cost effectiveness of property tax collections Long term: Prioritize the filing of Valuation Reform Act to address the systemic issues associated with LGU failure to adopt market based valuation and conduct regular updating of SMVs. Revisit property taxes to remove disincentives for owners to understate property values Revisit IRA provisions of LGC to remove disincentives for generating internal revenues
Expropriation Indicators Covered: Incidence of expropriation Transparency of procedures
Expropriation Incidence of expropriation Policies do not allow expropriation of properties for private interests (A) A large portion of expropriated land (30-50%) in the past 3 years have been transferred to their destined use due to delays in project approvals, negotiations and compensation (C)
Expropriations The government has no resettlement policy that would define the just compensation for socio economic and income losses (small businesses and commercial establishments) arising from public expropriation proceedings. Existing policies for compensation varied and inconsistent Only FAPs have RAPs Only national infra projects use market values and pay upfront LGU and other infra projects use assessed values; pay 15% only to acquire properties; payments substantially delayed Those with unregistered rights are not paid compensation Independent avenues to lodge a complaint against expropriation exist but there are access restrictions (i.e. only accessible by mid-income and wealthy).
Expropriations - Recommendations Short term: Agencies to develop their own RAPs Agencies should upload their expropriation data at websites Engage external monitoring agents to keep track of promptness of compensation, values paid, and other indicators Long term A national resettlement policy should be formulated to provide for prompt compensation and entitlements, grievance redress and sustainable livelihood restoration and improvement program. Amendment of R.A. 8974 to cover locally implemented projects and those implemented by LGUs
Public Provision of Land Information Indicators Assessed Completeness of the registry Reliability of records Cost effectiveness and sustainability Transparency
Public Provision of Land Information Completeness of the registry Mapping of registry records is incomplete less than 50% of individually held rights are not identifiable on the map (D); since LRA/RoD does not have cadastral maps; and cadastral maps in DENR do not have title information; no sharing of information Economically relevant private encumbrances and public restrictions are reflected in the title (A) Registry is searcheable (A) Records are accessible for a fee (A) Records can be accessed within a short time (A)
Public Provision of Land Information Reliability of records There are meaningful publicly displayed standards, but these are not effectively monitored (B) Between 50-60% of records in the registry is not up to date (C) In the cadastre, up to date ownership information is less than 50% (D) Reasons: Cadastral survey and titling are still incomplete High transfer taxes serve as disincentives for registration
Public Provision of Land Information Disincentives for registration of land transactions. High transfer taxes, Perceived bureaucratic processes, Coupled with the large number of untitled parcels, these impact on the completeness of the registry and the collection of appropriate fees and taxes by government. Information on registry is not up to date. Effects on reliability of records; cost of securing accurate records; contributes to delays in formalization of housing; and confidence in registry
Public Provision of Land Information Cost effectiveness and sustainability Cost of registering a property transfer is high (more than 5% of property values); capital gains tax of 6%; documentary stamp at 1.5% D The registry is financially sustainable; LRA/RoD one of the highest earning agencies in government A There is sufficient capital investment in the registry A Capital investment in the cadastre expected with AF of LAMP2 B
Public Provision of Land Information Transparency Schedule of fees are publicly available A Mechanisms to detect and deal with illegal staff behavior exist in all registry offices but cases are not systematically or promptly dealt with B; difficult to lodge a complaint; LTCP has drastically reduced discretion
Land Dispute Resolution Indicators Assessed: Assignment of responsibility Level of pending conflicts
Land Dispute Resolution Assignment of responsibility Informal or community based conflict resolution exists through the barangay justice system A Opportunities for forum shopping is minimal and not allowed by law B Appeals are possible but these are expensive and takes a many years to be resolved - C
Land Dispute Resolution The processes for appeal of land dispute rulings are lengthy and expensive. - D Cases decided by the Supreme Court in 2012 showed that in more than 90% of the cases it took more than 20 years for cases to be resolved with finality. Even cases first filed with the lower court as far back as 1970 were only decided by the Supreme Court in 2012. However, land related cases constitute only less than 10% of all cases Some reforms in the administration of justice system is warranted to unlock the potential of these properties and minimize the social costs of delays.
Land Dispute Resolution Recommendations: Organize records of the Courts Consider setting up of dedicated Land Courts and/or Land Adjudication Boards to speed up resolution of land cases
Large Scale Land Acquisition Mapping of forest lands boundary is complete, but registration and mapping of all rights are incomplete B Land use restrictions on rural land can generally be identified on the ground for CARP areas, but not for forest lands, ancestral domains and national parks B Public institutions involved in land acquisitions are regularly audited, and their reports made public but these are based on general audit and civil service rules. At the field, some staff can be involved in deals; and LGUs performance vary widely C There are written but unclear provisions in law or regulations regarding incentives for investors and their applicability have to be negotiated on a case by case basis in a way that is often discretionary. C (Inconsistencies in policies on forest plantations; tenure instruments cannot be used as collateral) Mechanisms to allow the public to obtain benefits from the investment (or investing party) other than compensation (e.g., schools, roads, etc.) are rarely used or applied in a discretionary manner. C (no standards, negotiated on a case to case basis; lack of guidelines for benefit sharing)
Large Scale Land Acquisition There are direct negotiations between rights holders and investors but not always transparent B (improper FPIC processes; lack of information; misrepresentation) At national agencies, information required from investors are clear; but not at LGUs Investors are required to provide information, but not all are publicly accessible B Contracts specify risk and benefit sharing but poorly understood and agreed by all parties - no clear standards for benefit and risk sharing with communities in large scale land acquisition projects - C Benefit sharing is an outcome of direct negotiation between investors and right holders Government agencies provide oversight role to ensure just and fair treatment.
Large Scale Land Acquisition Investment applications receive a response within 6 months; but may take longer with DAR if it involves land tenure improvement issues; community apprehensions; lack of understanding and transparency thereby delaying FPIC B Environmental and social safeguards are in place, but there is weak monitoring of compliance B and C Procedures to fully cover economic, social, and environmental issues for joint venture agreements in public/community land are in place but not implemented effectively. C (require careful monitoring and implementation by LGUs) Compliance with safeguards related to agricultural investments is weak C Affected parties can lodge complaints with responsible agencies depending on the nature of the complaint DOLE, DENR, DAR - B
Large Scale Land Acquisition Conflicts related to use or ownership rights and directly or indirectly related to land acquisition are relatively frequent (more than 5% of rural land area affected) and the inability to address these conflicts expeditiously and in a transparent manner results in long pending disputes. D Unfulfilled promises, low rentals In public lands, conflicts arise when land development is not consistent with approved resource management plans When FPIC process is not followed; or misrepresentation by community When IP rights are not recognized in establishment of special economic zones
Large Scale Land Acquisition - Recommendations Modest ratings are linked with overregulation, overlapping policies and jurisdictions, weak monitoring for compliance, lack of investment incentives, and vulnerability of community organizations. Establish standards for benefit sharing Strengthen monitoring systems for compliance with agreements Establish code of ethics specifically for LSLA Support capacity development of local communities/rights holders Set up dispute resolution mechanisms Further investigation on LSLA
Forestry Indicators Assessed Commitment to sustainability and climate change mitigation Recognition of public goods aspects of forests and promoting their sustainable use Supporting private sector to invest sustainably in forest activities Livelihood aspects of local, traditional and indigenous forest-dependent communities Forest land use, tenure and land conversion Controlling illegal logging and other forest crimes
Forestry Commitment to sustainability and climate change mitigation The country is signatory to most important international conventions. It is implementing most of them within limited resources B Incentives such as PES and REDD+ are still in infant stage in the Philippines; not fully developed policies; implementation through pilots only C
Forestry Recognition of public goods aspects of forests and promoting their sustainable use Existing laws recognize and protect the public goods aspects of forest lands and protected areas A Forest management plans and budgets have focused on increasing forest cover, rehabilitating degraded forests; with limited attention to providing incentives for sustainable resource management - B
Forestry Supporting private sector to invest sustainably in forest activities Forest certification and chain of custody systems is not yet fully in place, and the area under certification systems is growing very slowly B There is a commitment to SMEs, but the country could do more to promote competition, income generation and productive rural employment - B
Forestry Livelihood aspects of local, traditional and indigenous forest-dependent communities IPRA recognizes traditional and indigenous rights to forest resources, but still subject to permits and regulations by DENR A Mechanisms for benefit or income sharing between communities are not yet well developed, rules are not clear - C
Forestry Forest land use, tenure and land conversion FLUP process allows public participation in planning and land use allocation; however, it is not yet widely implemented B Classification of forests into various uses and ownership are not yet clearly defined and demarcated - C
Forestry Controlling illegal logging and other forest crimes Some gains in the campaign and enforcement of regulations against illegal logging, hunting, and trade of prohibited wildlife. B There is strong inter and intra agency efforts and multi agency efforts to combat forest crimes, but these are patchy, and not sustainable - B
Forestry - Recommendations Formulate an enabling policy for wider use of PES and REDD+ as incentives for sustainable management of public forests and protected areas Assess budget allocations for forestry and protected areas such that these address the main drivers of deforestation and degradation i.e., poverty, lack of incentives for sustainable forest management, etc. Funding for public land management to provide focus on accelerating titling and protected area management Establish an integrated map and inventory of tenure, permits, concessions and other interests in public lands and make these accessible to the public Consider providing greater responsibility to LGUs in NRM; FLUPs to be adopted by all LGUs; promote IEM to ensure coherence in panning and management of lands of the public domain Accelerate establishment of forest certification systems and chain of custody systems to improve competitiveness
Emerging Findings and Policy Recommendations: Forestry Support a more aggressive program for promoting small and medium enterprises in the forestry sector to maximize the sectors contribution to rural employment and increases in incomes. This would require openness to forest investments in productive areas; clearly setting aside areas for protection; setting standards for sustainable harvesting of forest products; technical assistance to SMEs; and creating a financing window that is sensitive to the needs of SMEs It is essential that implementing rules and regulations be developed to provide adequate guidance, safeguards and standards for benefit and income sharing from public forests and protected areas with communities
Emerging Findings and Policy Recommendations: Forestry A more systematic analysis of the country s wood requirements and domestic supply is needed to improve assessment of the extent to which illegal supply enters the market. This would provide a better indication of the effectiveness of efforts against illegal logging.
Impacts of Weak Land Governance Social, Economic, and Fiscal Costs of Inaction High proportion of population with weak/insecure tenure; usually the poor and vulnerable Huge informality affects investments and land market activity Weak contribution of property sector to GDP Growing informality in prime urban areas, thus affecting land values, uses and development potential Overlaps in mandate affects access to reliable, up to date records; thus affecting investments and huge costs and delays in formalization of rights, results in long standing conflicts Reduced opportunity to collect property taxes essential for development and delivery of government services Inadequate mapping, inventory of lands of the public domain constricts investment potential; and results in long standing disputes Unresolved disputes locks out land from land market, creates uncertainty and results in conflicts Weak support systems for forestry, public land management and large scale land acquisition prevents potential for rural development, employment and promoting equity Creates strong opportunity for the educated and opportunists to benefit at the expense of the poor, landless, and vulnerable
Emerging Policy and Program Recommendations 1. National policy on resettlement 2. Refiing of following Bills: (i) Establishment of Land Administration Authority (ii) Property Valuation Reform Act (iii) National Land Use Act 3. Amendment of Local Government Code 4. Review of National and Local Property Taxes and Fees Programs: 1. Accelerate titling of untitled properties 2. Upscale LGU led initiatives in local LAM reforms 3. National Spatial Data Infrastructure
Suggestions on Way Forward Provide space for high level discussion of LGAF results through: One on one presentations with Department Secretaries or agency clusters (DAR, LRA, DENR, DoF, DPWH, DA) PDF discussions as platform to engage with development partners Cabinet or ICC presentation, or other effective means Presentations/discussions with Congress and Senate Committees Input in review of PDP Discussions with NGO/civil society groups Establish a Land Governance Coalition (??)
Suggestions on Way Forward Consider priority actionable areas as appropriate by GoP, in updating or preparation of CPS; could be used to engage with donors Assess relevant policy recommendations and revisit existing legislative proposals in Congress Examine relevance of LGAF in continuous monitoring of country progress in land governance and work out mechanisms for follow up; WB may consider mobilizing support to future country actions on LGAF Explore regional LGAFs (e.g., Mindanao and key cities) Explore Metro Manila LGAF to focus on urban issues More in depth study on large scale land acquisition module Update of LGAF in 2016 as basis for next PDP
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