Working With the Program (Sol. 2 Contractors)

The Restore Louisiana Homeowner Assistance Program is designed to allow homeowners to choose the solution (Solution 1 or Solution 2) that best suits their needs in the recovery process.

Through the Restore Louisiana Homeowner Assistance Programs Solution 2, homeowners can choose a Louisiana-licensed residential contractor for repair or reconstruction projects and work directly with them. For projects with less than $75,000 in remaining repairs, they may also hire a certified home improvement contractor.

What to Know

  • The program will monitor all Solution 2 projects by completing progress inspections.

  • Payments are disbursed in progress-based draws after each phase of construction is completed, inspected, and approved by the program.

  • Up to five draws are allowed per project.

  • Construction must begin and at least one inspection must be conducted to document completed progress within 180 days of grant execution.

  • Solution 2 projects must be completed within 365 days of grant execution unless a written hardship extension is approved.

  • All homebuilding contractors must be licensed and insured, which the program will confirm with the Louisiana State Licensing Board for Contractors.

A homeowners grant award is calculated using the following formula:

  • Estimated Cost of Completed Repairs – Duplication of Benefits (DOB) (e.g., FEMA, private insurance, SBA loans, charitable aid)

DUPLICATION OF BENEFITS AND HOMEOWNER RESPONSIBILITY

A Duplication of Benefits (DOB) occurs when a homeowner receives funding from other sources (e.g., FEMA, insurance, SBA, or charitable organizations) for the same repair work covered by the program. Federal law requires these funds be used first before any additional program funds can be disbursed.

The Solution 2 (Homeowner-Managed Construction), Homeowner Responsibility is the amount that must be fully invested into eligible repairs by the homeowner before program grant funds become available.

ESTIMATED COST OF COMPLETED REPAIRS

The program determines the Estimated Cost of Repairs (ECR) using standardized, economy-grade materials. The total award may include:

  • Repair costs

  • Program-eligible square footage (reconstruction projects)

  • 20% contractor overhead and profit

Homeowners with remaining repairs can hire a contractor to complete the work outlined in the program-approved ECR. While the program provides funding based on economy-grade materials and finishes, under Solution 2, the homeowner may select higher grade materials and finishes and pay the difference in price.

The program cannot reimburse funds to a Solution 2 homeowner or contractor for completing work outside of the ECR, regardless of the agreement between the contractor and the homeowner (for example, upgrades).

PAYMENT PROCESS AND FUND DRAW DOWNS

Solution 2 homeowners work directly with their selected contractor on all contracts to develop a Project Plan required by the program that details the timelines and projected draw schedule for repairs.

As completed ECR items are observed during the inspection, a corresponding payment request will be initiated and a two-party payment to the homeowner and the contractor will be issued after all homeowner responsibility funds have been used.

Although the program monitors the work, and disburses funds as construction work is completed, the program is not party to a Solution 2 homeowners contract with their contractor, and the program does not manage the details of said contract or the quality of the craftsmanship of repairs completed.

The program will not pay an advance payment on behalf of a homeowner, regardless of the terms of the contract between the homeowner and their selected contractor.

CHANGE ORDERS

Change orders are required when there are unforeseen conditions or necessary adjustments to the approved scope of work. Change orders must be submitted through the program with supporting documentation and receive approval before the related work is performed.

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