New land payment law worries MPLA chair

Marianas Public Lands Authority chair Ana Demapan-Castro has cited some flaws in the newly passed amendments to the land compensation law.

In an interview, Demapan-Castro said Public Law 14-29, which amends three main provisions of the Land Compensation Act of 2002, is “a good law” because it provides for a fair treatment of all land compensation claimants.

However, she expressed concern over one amendment establishing a specific date that MPLA must use as a basis for land appraisal.

Currently, individuals with land compensation claims receive the actual value of the land at the time when the government took their property. With P.L.14-29, the amount of compensation due the former landowner will be based on the market value of the land at the time the governor or other authorized government official certifies in writing the need for the acquisition of the private land.

Demapan-Castro said this might cause a problem, for instance, for some claimants whose properties are located adjacent to each other, but who do not get a government certification at the same time.

“Say you and your sibling have properties located right next to each other. The government took them expand a road in the 1990s, when the value of real estate in the CNMI was high. Your sibling got his certification right at the time of the taking; but due to bureaucracy or whatever reason, you get your certification only now. There will definitely be a huge difference in the amount of compensation you will get, as compared with his,” she noted.

Demapan-Castro also noted that the law was unclear on which government officials were authorized to make certifications.

Earlier, Gov. Juan N. Babauta himself had raised concern about this provision, though he took a point of view different from that of MPLA chair.

In a letter to the Legislature, Babauta had noted to the Legislature that many such certifications were made at a time when high market values were prevailing.

“[As such, land compensation] claims…will deplete the $40-million bond issue authorized by [the original Land Compensation Act] and may require authorization of additional bond measures or appropriations by the Legislature to ensure that all persons with land compensation claims are paid in an expeditious manner,” the governor had said.

P.L 14-29 removes the prioritization previously mandated for land compensation claims made by private landowners whose land was taken for public road construction.

Rather, it states that all land compensation claims for public road construction, construction of ponding basins, wetland, and other claims involving private land acquisition should be treated equally.

Further, the new law amends the provisions of the Land Compensation Act related to the transfer of bond proceeds to MPLA and funding of administrative costs of implementing the provisions of the 2002 law.

Under P.L. 14-29, the Commonwealth Development Authority is no longer required to transfer all the proceeds of the $40 million bond issue to MPLA for payment of land compensation claims.

This means that all of the proceeds of the $40 million bond issues should not be held in a separate account by MPLA anymore.

Instead, the bonds’ proceeds should be held in trust by a CDA-appointed trustee that will secure the bond issue funds. The trustee will only release the funds for the purpose of land compensation claims and reasonable administrative costs made at the request of the MPLA commissioner, with the concurrence of the MPLA board.