PRESIDENT Arroyo has institutionalized a national land-valuation system to sustain and institute real-property valuation reforms in the country pending the passage of the proposed Valuation Reform Act (VRA) which seeks to create a National Valuation Authority.

Executive Order (EO) 833, which the President signed upon the recommendation of the Department of Finance (DOF), creates the Property Valuation Office (PVO).

In explaining the rationale for EO 833, the President said the government embarked on a Land Administration and Management (LAM) Reform Program which, among others, includes instituting reforms in the real-property valuation sector through the adoption of single real-property valuation system.

“A single national property valuation system is desired to stimulate the land market for capital mobilization which has tremendous impact on the national and local economies, particularly on the country’s gross domestic product,” she said.

The DOF entered into an agreement under the Second Land Administration and Management Project (LAMP2) with the World Bank and the Australian Agency for International Development, to institute real-property valuation reform and to establish a national valuation authority, among others.

In partial compliance with an international commitment, the DOF created the ad hoc Property Valuation Staff (PVS) through Department of Finance Order 34-07 on August 30, 2007, while the proposed VRA bill is being deliberated  in Congress.

“To effectively institutionalize the reforms being undertaken by the PVS and to sustain the benefits from capacity development interventions being provided under LAMP2, an Executive Order is necessary for the creation of permanent positions and the allocation of necessary funds therefore to provide assurance of continuity,” EO 833 stated.

The PVO will be headed by a director and composed of six divisions for policy, planning, monitoring and evaluation; valuation database and information system; valuation standards; valuation education and training; and finance and administration.

The PVO will continue to exist under the DOF and funded under the General Appropriations Act until the national valuation authority is created by law.

In the event that the proposed measure is not approved by Congress, the PVO shall be under the supervision of the DOF or its assigned agency.

EO 833 also creates the Property Valuation Advisory Committee (PVAC) headed by the executive director of the Bureau of Local Government Finance and as members, the PVO director and representatives from the Bureau of Internal Revenue, National Tax Research Center, Land Registration Authority, national local governments assessors’ association, national local governments treasurers’ association, private appraisal sector, civil society and others as may be deemed necessary.

The PVAC will exist until another advisory body, as may be required by the VRA, is constituted.

The LAMP2 Management Committee or subsequent projects under LAM reform program shall provide policy guidance to the PVO and the PVAC, until the VRA is passed.

In the event that the LAMP2 and subsequent projects under the government’s LAM reform agenda are discontinued, the PVO will continue to operate, and be funded under the national government budget.

The maintenance and other operating expenses and capital outlay of the PVO shall be derived from LAMP projects as long as LAMP projects exist.

If the VRA is enacted, the PVO shall be transformed into the national valuation authority and its budget would be as defined in the VRA.

The DOF, in consultation with relevant authorities, will prepare the implementing rules and regulations of EO 833 though a comprehensive usage manual, subject to the approval of the Office of the President.