I
Prefatory Statement

Pursuant to Sections 22 (3) and 26 (a) of Republic Act No. 1199, Section 24 of RA 3844, as amended, Section 16 of RA 6389, Sections 30 and 40 (4) of RA 6657 (Refer to Annex 1), and the provisions of LOI 705 and other related laws, the homelot, as an integral part of the farm and as an indispensable factor in farm operations, may be acquired and distributed to the agrarian reform beneficiary (ARB) in accordance with the land transfer process of CARP.

In this regard, the following guidelines are hereby prescribed for the guidance of all concerned.

II
Policy Statement

A. A homelot refers to a parcel of agricultural land used by the ARB as the site of his permanent dwelling including the area utilized for raising vegetables, poultry, pigs and other animals and engaging in minor industries.  The area of the homelot may not exceed 1,000 square meters.

B. An ARB may be awarded the homelot he actually occupies if it is subject of land distribution under CARP, provided said homelot does not form part of the retained area of the landowner.

C. A tenant-beneficiary who is awarded a farmlot but has his homelot within the retained area of the landowner may be made to transfer his dwelling in his farmlot or other area designated for his homelot which shall be mutually agreed upon by both parties.  Provided, however, that the landowner shoulders the cost of the transfer of his dwelling and the agreed cost of other improvements introduced by the tenant-beneficiary on the said homelot.

D. In general, a farmworker-beneficiary shall establish his homelot within the farmlot awarded to him.  If his existing homelot is within the retained area of the landowner, said landowner may require the farmworker-beneficiary to transfer his dwelling and other improvements outside of the retained area.  The cost of such transfer shall be shouldered by the said farmworker-beneficiary.

The landowner may opt to request the farmworker-beneficiary not to remove the dwelling or other improvements for the former ™s own use.  In such case, the landowner shall pay for the value of the dwelling and other improvements he decides to make use of.

E. As a general rule, the value of the homelot shall be computed on the basis of the price of the farmlot transferred to the ARB.

If the homelot is outside the farmlot awarded to the tenant-beneficiary, the price shall be based on the value of the farmholding where said homelot is located, provided such farmholding is covered under the CARP.

III
Procedures

The procedures in the acquisition and distribution of farmlots (Administrative Order Nos. 9 and 10, series of 1990) shall likewise apply in the acquisition and distribution of homelots subject to such modifications as may be necessary to pursue the policy statements above.

IV
Effectivity

This order shall take effect ten (10) days after its publication in two (2) national newspapers of general circulation pursuant to Section 49 of RA 6657.  All orders, circulars, rules, and regulations inconsistent herewith are hereby revoked, amended or modified accordingly.

Adopted: 21 Nov. 1991