Solution 1 vs Solution 2: Picking the Right Path for Your Louisiana Recovery

We’ve been getting the same question from homeowners all week: “I’m in the Restore Louisiana program. How do I decide between Solution 1 and Solution 2?”

There’s no universal right answer, but there’s a framework that makes it obvious for most people.

The short version

Solution 1 is program-managed construction. The state selects a pool of contractors, assigns the work, and runs the project from scope through sign-off. You’re less in the driver’s seat and the process moves on the program’s schedule.
Solution 2 is homeowner-managed construction. You pick a Louisiana-licensed contractor yourself. The program verifies the contractor’s credentials, reviews the scope against its Estimated Cost of Repairs, and pays through a joint homeowner-contractor draw schedule.

If you already trust a licensed Louisiana contractor — and want to keep the conversation direct — Solution 2 is the path. If you want the program to hand you a contractor and manage the job, Solution 1 is the path.

Who should probably pick Solution 1

You don’t have a contractor relationship and don’t want to shop for one.
Your damage is straightforward and you’re fine with a managed scope.
You don’t have time or bandwidth to manage a project actively.
You’ve had bad experiences with contractors and would prefer the program as the middleman.

Who should probably pick Solution 2

You already have a contractor you trust — or you know who you want to hire.
Your scope is complex: multi-trade damage, structural questions, unusual site conditions.
You want regular direct communication with the person running the work.
You want to verify the contractor’s license and insurance yourself and keep that direct relationship through the project.

What doesn’t change between the two

Both paths are funded by the same HUD CDBG-DR money. Both require that work fall inside the program’s Estimated Cost of Repairs. Both require code-compliant construction. Both result in inspected, documented repairs.

What changes is who you talk to — the program, or the contractor.

A few practical notes on Solution 2

Because this is the path we work with most, a few things to know upfront:

Contractors must be Louisiana-licensed — the program verifies with the Louisiana State Licensing Board for Contractors.
Smaller projects (under $75,000 in remaining repairs) can also use a certified home-improvement contractor.
You’ll sign a Project Plan jointly with your contractor that lays out timeline and draw schedule.
Construction must start within 180 days of grant execution, with a documented inspection.
Projects must complete within 365 days unless a written hardship extension is approved.
Up to five progress draws — two-party payments issued to homeowner and contractor after inspection.
No advance payments. Period. If a contractor asks for one, they’re not running Solution 2 correctly.

Can I switch paths?

Generally, yes — but the earlier the better. Once a project plan is in motion under one solution, moving it to the other is paperwork-heavy. If you’re still in the application phase, this is the time to decide.