It is welcomed by the association as the country has a critical need for affordable housing.
Recently, the Department of Justice (DOJ) issued Legal Opinion No. 16, Series of 2026, where it stated a removal of a major bureaucratic hurdle in acquiring land for new communities.
Specifically, the said paper stated that private agricultural land transactions without an existing Notice of Coverage (NOC) are not required to seek a Land Transfer Clearance (LTC) from the Department of Agrarian Reform (DAR).
The DOJ determined that the five-hectare retention limit, which served as the legal basis for the clearance, ceased to be effective following the statutory cutoff on June 30, 2014, also known as the CARPER Deadline.
In response, the Subdivision and Housing Developers Association (SHDA) backed the DOJ’s legal opinion.
According to them, the LTC has been an added administrative step before land acquisition can move forward.
By removing it for unencumbered titles, developers are said to be able to proceed more efficiently toward title transfer, project financing, permitting, construction, and site preparation.
SHDA members build 80% of the homes produced in the Philippines each year. The association has 350 members nationwide and eight regional chapters, making it the largest industry association for housing and urban development in the Philippines.
It said that reducing transaction costs and administrative delays is a step toward expanding the supply of affordable homes for Filipino families.
“Predictability in land administration is important to keeping housing projects moving,” said Engr. Francis Richmond Villegas, SHDA Chairman of the Board.
“A clear and consistent process allows developers and other stakeholders to make informed decisions, manage project timelines, and pursue investments with confidence. We see this as an opportunity to support a framework that is responsive to the needs of the housing industry while remaining aligned with existing laws and regulations,” he added.
It, however, said that speed does not mean cutting corners as housing developers remain committed to fully complying with existing national and local laws, including DAR land use conversion requirements, local zoning ordinances, Department of Environment and Natural Resources (DENR) requirements for environmental clearance, and other housing development regulations.
Even with the clearance requirement lifted, SHDA also noted that to ensure an orderly transition, they are urging DAR, the Land Registration Authority (LRA), and Registers of Deeds (RODs) to issue joint administrative guidelines establishing standardized procedures and documentary requirements nationwide.
“The DOJ opinion gives the industry legal clarity. What we need now is the same clarity on the ground. Joint guidelines from DAR, LRA, and the RODs will ensure that every office applies the ruling the same way, so landowners, developers, and financial institutions can move forward with certainty,” Kerwin Padua, SHDA National President conveyed.
