(DPL) — As part of the Department of Public Lands’ ongoing efforts to strengthen transparency, accountability, and outreach to our stakeholders, DPL is launching a renewed initiative through its Compliance Division to remind all lessees and permit holders of their obligations under existing lease and permit agreements.
Please ensure you are keeping up to date with all requirements of your DPL leases and Temporary Occupancy Agreements or TOAs. Compliance is essential for fulfilling your contractual obligations and supporting sustainable land management in the CNMI. Failure to comply with the requirements of your agreements or DPL regulations may subject you to penalties, financial charges, or termination of your lease or permit.
This initiative reflects our commitment to maintaining open communication and ensuring that every leaseholder and permittee clearly understands their responsibilities. The Department encourages all parties to take a moment to review their contracts and familiarize themselves with key provisions that require DPL inspections and other compliance actions.
The following serves as a friendly reminder highlighting some of the major areas commonly addressed within the articles and provisions of your agreements. Please note that this summary is provided to promote awareness and transparency — it does not replace your responsibility to review and comply with the full terms of your lease or permit.
Key compliance requirements to avoid penalties may include the following:
• Financial Remittance. You must ensure the timely remittance of all lease rentals and TOA fees. Past due rental payments accrue interest at one and a half percent (1.5%) per month compounded monthly.
• Business Gross Receipts reporting. For leases and certain agreements, you must calculate, report, and pay additional rent charged as a percentage of your Business Gross Receipts. Accurate CNMI BGR tax filings and supporting financial statements must be submitted promptly.
• Insurance Policies. Storm (typhoon), fire, and damage insurance for the premises with extended coverage endorsements jointly in the names of the lessee and the DPL, covering the full insurable value of all improvements on the Premises, subject to appropriate co-insurance provisions. Also, liability insurance must be maintained, during the term of the agreement, naming DPL and the Commonwealth as co-insureds, with specific minimum coverage amounts required for leases, concessions, and TOA’s.
• Property Use and Maintenance. Premises must be strictly used according to the stated purpose clause in your agreement.
• Documentation Submission. You are required to submit all requisite documents stipulated in your agreement, which may include valid business license, annual corporation reports, CNMI business gross revenue tax return, audited financial statements, royalty reports, construction plans/updates, and CNMI government and federal regulatory permits.
• No Unauthorized Use or Alterations. Avoid unauthorized and illegal activities (encroachments/squatters).
• Express Prior Written Approval. The expressed, written approval of DPL is required prior to the execution of a sublease agreement, the construction or demolition of improvements whose value exceeds a specified amount, the execution of a mortgage, the conveyance (transfer, assignment, sale, etc.) of a lease, amendment to any provision of the lease, and so forth.
DPL strictly enforces the terms of every agreement. Please take the time now to review your lease for the precise terms and conditions regarding activities requiring DPL’s prior written consent. If you are found in material default, DPL may issue a notice requiring the default to be cured within 30 days before moving toward termination of your agreement.
Furthermore, unauthorized occupants who fail to vacate after termination/expiration are deemed holdover tenants and must pay a fee of at least 150% of the basic rent.
If you have questions about your compliance status or need to contact DPL, please refer to our contact information: Department of Public Lands 2nd Floor, Joeten Dandan Bldg. P.O. Box 500380 Saipan, MP 96950 Tel: (670) 234-3751/54
Website: www.dpl.gov.mp
Facebook: www.facebook.com/DplCnmi