Introduction

In the Philippines, the Certificate of Land Ownership Award (CLOA) represents a cornerstone of the country's agrarian reform program, aimed at redistributing agricultural lands to landless farmers and promoting social justice. Issued under the Comprehensive Agrarian Reform Program (CARP), CLOA titles grant ownership to qualified agrarian reform beneficiaries (ARBs) for lands previously held by large landowners. However, owning CLOA land comes with specific restrictions designed to preserve the agricultural nature of the property and prevent speculative practices. One common query among ARBs is whether and how they can build a house on such land. This article explores the legal rules, processes, limitations, and implications of constructing residential structures on CLOA-awarded lands, drawing from relevant Philippine laws and regulations.

Legal Basis for CLOA Lands

The primary legal foundation for CLOA is Republic Act No. 6657, also known as the Comprehensive Agrarian Reform Law of 1988 (CARL), as amended by Republic Act No. 9700 (CARPER) in 2009. Under these laws, CLOA is a title evidencing ownership of agricultural land awarded to ARBs. The Department of Agrarian Reform (DAR) administers the program, ensuring that the lands remain productive for agriculture.

Key provisions include:

Section 27 of RA 6657: Prohibits the sale, transfer, or conveyance of awarded lands for a period of ten (10) years from the date of award, except through hereditary succession, to the government, or to other qualified beneficiaries via the DAR.
Section 22 of RA 6657: Emphasizes that awarded lands must be used for agricultural purposes to fulfill the program's objectives.
DAR Administrative Orders (AOs), such as AO No. 1, Series of 2011, which provides guidelines on land use conversion, and AO No. 2, Series of 2002, on the rights and obligations of ARBs.

These laws underscore that CLOA lands are inherently agricultural, and any shift to non-agricultural uses, including residential construction, must align with agrarian reform principles.

Restrictions on Building Structures on CLOA Land

Building a house on CLOA land is not outright prohibited but is subject to stringent conditions to prevent the de facto conversion of agricultural land into residential or commercial property. The main restrictions stem from the land's classification and the ARB's obligations:

Agricultural Use Mandate: CLOA lands must remain agricultural. Constructing a house could be seen as altering the land's use if it occupies a significant portion or leads to neglect of farming activities. However, ARBs are allowed to build modest dwellings for their personal and family use, as this supports their ability to cultivate the land.
Ten-Year Inalienability Period: During the first ten years, the land cannot be sold or mortgaged, which indirectly affects construction. Any building might be considered an improvement that could complicate future transfers or repossessions if the ARB fails to comply with obligations like amortizing payments to the Land Bank of the Philippines.
No Automatic Conversion: Large-scale residential development or subdivision is forbidden without DAR approval for land use conversion. Conversion is only granted under exceptional circumstances, such as when the land is no longer economically viable for agriculture (per DAR AO No. 1, Series of 2002).
Area Limitations: There is no explicit square-meter limit in the law, but DAR guidelines suggest that residential structures should not exceed what is necessary for the ARB's habitation. Typically, this means a small house (e.g., under 500 square meters) that does not encroach on prime agricultural areas. If the structure covers more than 5% of the land or affects irrigation, it may require scrutiny.
Environmental and Zoning Constraints: Even if DAR allows construction, compliance with the National Building Code (PD 1096), local zoning ordinances, and environmental laws (e.g., RA 8749 on Clean Air Act or RA 9275 on Clean Water Act) is mandatory. Building on CLOA land in protected areas, like those under the National Integrated Protected Areas System (NIPAS), is further restricted.

Permissions and Approvals Required

To legally build a house on CLOA land, ARBs must navigate a multi-layered approval process involving national and local agencies. The process ensures that construction does not undermine agrarian reform goals.

DAR Clearance or Exemption:
- ARBs must secure a Certificate of Exemption from DAR if the construction is for personal residential use and does not constitute land conversion. This is outlined in DAR Memorandum Circular No. 9, Series of 1997, which allows "homelots" on awarded lands.
- For larger structures or if the land is reclassified, a full Land Use Conversion application is needed. This involves submitting a petition to the DAR Provincial Office, including a project feasibility study, environmental compliance certificate (ECC) from the Department of Environment and Natural Resources (DENR), and proof that the land is not irrigated or prime agricultural.
- Processing time: 30-60 days for exemptions; up to 6 months for conversions.
Local Government Unit (LGU) Permits:
- Building Permit: Issued by the Municipal or City Engineer's Office under the National Building Code. Requires architectural plans, structural computations, and sanitary/electrical permits.
- Zoning Clearance: From the LGU's Zoning Administrator, confirming the construction aligns with the Comprehensive Land Use Plan (CLUP). CLOA lands are often zoned as agricultural, so residential building may need a locational clearance.
- Barangay Clearance: A prerequisite for LGU permits, verifying no disputes with neighbors.
Other Requirements:
- ECC from DENR: For projects with potential environmental impact, though small houses may qualify for a Certificate of Non-Coverage (CNC).
- HLURB Approval: If the house is part of a subdivision-like setup, the Housing and Land Use Regulatory Board (now under DHSUD) may be involved, but this is rare for individual ARBs.
- Amortization Compliance: ARBs must be up-to-date on payments to the Land Bank; outstanding debts can block approvals.

The process begins with consulting the local DAR office. Fees vary: DAR exemptions may cost PHP 500-2,000, while building permits depend on construction value (e.g., 1-2% of estimated cost).

Step-by-Step Process for Building

Verify CLOA Status: Confirm the land is fully awarded and the ten-year period status via DAR records. Ensure no encumbrances or disputes.
Plan the Structure: Design a modest house that minimizes agricultural disruption. Engage a licensed architect or engineer.
Secure DAR Approval: Submit application for exemption or conversion. Include affidavits swearing the house is for personal use.
Obtain LGU Clearances: Apply for zoning, building, and other permits, attaching DAR documents.
Construct and Inspect: Build according to approved plans. LGU conducts inspections for occupancy permit.
Register Improvements: Update the CLOA annotation with the Register of Deeds to reflect the structure, aiding future valuations.

Penalties for Non-Compliance

Violating CLOA rules can lead to severe consequences:

Cancellation of CLOA: Under Section 37 of RA 6657, DAR can revoke the title if the land is converted without approval or abandoned.
Fines and Imprisonment: RA 6657 imposes fines up to PHP 100,000 and imprisonment of up to 6 years for illegal conversions. Local ordinances may add penalties for unpermitted buildings.
Demolition: Unauthorized structures can be demolished at the owner's expense.
Civil Liabilities: Neighbors or the government may sue for damages if construction affects irrigation or productivity.

Enforcement is handled by DAR, with appeals possible to the DAR Adjudication Board (DARAB) or courts.

Special Considerations

For Heirs and Successors: Upon the ARB's death, heirs inherit the land but must continue agricultural use. Building permissions remain similar.
Lease or Rental: ARBs cannot lease the land for residential purposes without DAR approval, as this could be seen as circumvention.
Government Assistance: Programs like the DAR's Agrarian Reform Infrastructure Support Project (ARISP) may provide aid for farmhouses, but not luxury homes.
Impact of Recent Laws: The Rice Tariffication Law (RA 11203) and Anti-Agricultural Economic Sabotage Act (RA 12022) reinforce protections against conversions, making approvals harder for marginal lands.
COVID-19 and Calamity Exceptions: During disasters, temporary structures may be allowed under executive orders, but permanent ones still need post-facto regularization.

Conclusion

Building a house on CLOA land in the Philippines balances the need for shelter with the imperative to sustain agricultural productivity. While ARBs have the right to habitable dwellings, adherence to DAR and LGU requirements is crucial to avoid legal pitfalls. Prospective builders should consult DAR offices early to ensure compliance, as unauthorized actions risk losing the land entirely. This framework not only protects agrarian reform beneficiaries but also safeguards the nation's food security by preserving farmland. For specific cases, professional legal advice is recommended to navigate nuances.