AN ACT TO AMEND CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED ONE THOUSAND ONE HUNDRED SIXTY-TWO.

Case Overview and Summary

Summary of Republic Act No. 1599

Expropriation of Landed Estates or Haciendas in Manila
- Authorizes the expropriation of landed estates or haciendas, or lands which formerly formed part thereof, in the City of Manila, which have been leased to tenants for at least 10 years. (Sec. 1)
- The lands must have at least 50 houses of tenants erected thereon. (Sec. 1)

Expropriation Proceedings
- The Land Tenure Administration shall institute the proper expropriation proceedings before the competent court of the City of Manila. (Sec. 2)

Subdivision and Sale of Expropriated Lands
- The expropriated lands shall be subdivided into small lots, none exceeding 150 square meters in area. (Sec. 3)
- The lots shall be sold at cost to the tenants or occupants, and then to other individuals. (Sec. 3)
- If the tenant cannot purchase the lot, they shall be given a month-to-month lease until they can purchase it. (Sec. 3)
- The rentals charged by the government for leased lots shall not exceed 8% per annum of the assessed valuation. (Sec. 3)
- The lots shall be sold at cost, which means the price paid by the government to the landowner, plus 6% interest per annum, payable under a 25-year amortization plan. (Sec. 4)
- The cost of each lot shall exclude the price paid for areas covered by streets, plazas, alleys, and other lands for public use, as well as the cost of subdivision and survey. (Sec. 4)

Suspension of Ejectment Proceedings
- Ejectment proceedings against any tenant or occupant shall be suspended for 2 years upon the defendant's motion, if they pay their current rentals. (Sec. 5)
- The suspension shall continue upon the filing of expropriation proceedings until the final determination. (Sec. 5)
- If the tenant or occupant is in arrears, the amount due shall be liquidated and payable in 18 equal monthly installments. (Sec. 5)
- Rentals shall not be increased above the amounts charged as of December 31, 1953, except in cases of existing rental contracts for a fixed period that expired on that date, in which case the court shall fix a reasonable rental not exceeding 8% of the assessed value on December 31, 1953, plus any actual increase in land tax. (Sec. 5)
- No lot or portion occupied by a tenant or occupant shall be sold by the landowner to any other person unless the tenant or occupant renounces their rights under this Act. (Sec. 5)
- If tenants have constructed bona fide improvements on the leased lots, their rights should be recognized in the sale or lease of the lots, regardless of the area limitation in Section 3. (Sec. 5)

Funding
- The amount necessary to carry out the expropriation, not exceeding 15 million pesos, shall be taken from the amount provided for in Republic Act No. 1400. (Sec. 8)