State of Louisiana promises full payments to Solution 1 builders but threatens Solution 2 builders with zero.
State of Louisiana OCD-DRU sent out notices to Solution 2 Homeowners who are constructing new homes to replace their substantially damaged homes from the 2016 floods that their may not be enough funds to honor the grant agreement.

By Murray Wennerlund published 11-3-2022 updated 11-3-2022

In the fourth attempt to terminate Solution 2 Homeowners from the Restore Louisiana Program the state of Louisiana Governors Team which includes the OCD-DRU managers have made it clear that state hired contractors will be given time that they missed during the 2020 year but homeowners doing their own building are not offered the same options. 

Page 1 Section 1.1 SCOPE OF SERVICES 

State of Louisiana OCD-DRU Contract (PO 2000558384) with IEM Inc. for Construction and Reconstruction projects for homeowners. 

“For Solution 1 projects that could not be completed before the expiration of the prior contracts, and such lack of completion was the result of the COVID19 Pandemic or was the result of extenuating circumstances beyond the reasonable control of the Contractor or its Subcontractor, the Contractor shall be paid the remaining Solution 1 grant funds and the associated business and construction management (BCM) fee upon completion of the construction activities under that solution 1 grant, subject to any retainage requirement under this Contract and subject to performance penalty review by the State.”

Page 4 Section 2.1 Term of Contract 

“The contract shall begin on January 21, 2021 and shall end on January 20, 2022 unless terminated earlier in accordance with the provisions herein. OCD may exercise an option to extend for up to twenty-four (24) additional months at the same rates, terms, and conditions of the initial contract term.”

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