News Summary
Waterford Property Company is ramping up its initiatives to provide affordable housing for middle-class workers in Orange County despite facing a legal challenge over back taxes. The company, which has over 6,500 units, aims to expand to 15,000 units in the next seven years while fighting a $22 million tax claim from the county assessor. The outcome of this dispute could impact housing availability for many families relying on affordable options in the region.
Waterford Property Company Expands Affordable Housing Efforts Amid Tax Dispute in Orange County
Newport Beach, California – Waterford Property Company is intensifying its efforts to provide affordable housing options for middle-class workers, amidst a growing legal dispute over back taxes with Orange County. The company, co-founded by John Drachman and Sean Rawson in 2019, aims to alleviate the burden of market-rate rents for essential workers in the region.
The firm estimates tenants at its properties in Orange and Anaheim are currently saving between $375 to $455 each month on rent. With a portfolio exceeding 6,500 units that includes market-rate, affordable, and workforce housing, Waterford plans to expand to 15,000 units over the next seven years. Presently, 125 units of affordable housing are under construction in Lake Forest and Irvine.
Furthermore, Waterford has over 2,500 units at varying stages of development throughout California and has made a recent investment in more than 700 units in Dallas, Texas, with half designated as workforce housing. The company’s ongoing projects reflect its commitment to serving essential workers, including teachers, firefighters, and civil servants.
However, this expansion is currently threatened by the actions of the county assessor, Claude Parrish, who is seeking $22 million in back taxes from Waterford. The dispute stems from a claim that Waterford should be taxed under California’s possessory interest law. In response, Waterford is contesting these tax assessments, asserting that it does not hold possessory interests in the properties it manages.
If the county’s position prevails, Waterford warns it may be forced to raise rents to market rates, risking displacement for many families who depend on workforce housing programs. The potential outcomes of this legal disagreement could significantly affect affordable housing availability for middle-class renters, including families like Nathan Luong and Madison O’Rourke, who rely on the accessible options Waterford provides.
Waterford has demonstrated a sustained commitment to affordable housing by securing partnerships with various governmental agencies, aiming to foster public-private collaborations that enhance housing availability. Their efforts have not gone unrecognized; Drachman and Rawson received the Excellence in Entrepreneurship Award from the Business Journal in 2024, highlighting their impact on addressing local housing needs.
The company’s approach to simultaneously expand its housing portfolio while contending with potential financial penalties illustrates the ongoing challenges within California’s housing market. Waterford’s apartments are reportedly nearly fully leased, emphasizing the demand for affordable housing situated close to local workplaces, which benefits both tenants and surrounding communities.
As Waterford Property Company continues to navigate this tax dispute, its long-term objectives remain clear. By focusing on service for those in essential roles that enable local economies to function, the company is setting its sights not only on expanding its physical presence but also on ensuring that community members are not left behind in the race for affordable housing solutions.
The outcome of the tax dispute will be pivotal, not only for Waterford and its operations but also for the broader landscape of affordable housing in Orange County and beyond. Stakeholders across the industry await the decision, which has the potential to redefine the future of housing access for many families in the region.
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Additional Resources
- OC Business Journal: OC50 2025 – John Drachman, Sean Rawson
- OC Business Journal: Waterford Property Aiming for 15,000 Multi-Family Units
- CoStar: Private Capital Firms Look to Invest Billions in Affordable Apartments
- Multi-Housing News: Public-Private Duo Strikes $156M California Deal
- OC Register: OC Workforce Housing Program Endangered
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
