FOLLOWING THE MONEY
Woodland Hills Country Club is currently owned by Newport Beach-based real estate firm
Arrimus Capital, which acquired it in 2020 from its members, with principals Ryan Ogulnick and Phil Wilson leading the purchase and redevelopment plans for the property, including building hundreds of new homes.
Managing partners for Arrimus Capital are Ray Wirta and Chris Lee (both listed on the planning application). Arrimus has an extensive portfolio, consisting of multi-family, student housing, industrial and triple net properties. Wirta was formerly CEO of CBRE and also served as president of the Irvine Company. For more about Wirta and Lee, CLICK HERE.
https://voiceofoc.org/2025/02/oc-developer-fined-by-state-officials-for-dark-money-campaign-in-santa-ana/
https://therealdeal.com/la/2022/03/23/developer-of-homeless-shelter-in-santa-ana-walks-off-job/
https://voiceofoc.org/2019/03/developer-offers-scaled-down-apartment-proposal-near-discovery-cube-on-north-main/
https://www.fppc.ca.gov/content/dam/fppc/NS-Documents/AgendaDocuments/consent-calendar/2025/february/Ryan-Ogulnick-et-al-201801194.pdf
HOW DO DEVELOPERS MAKE SO MUCH MONEY ON HIGH DENSITY AFFORDABLE HOUSING, AND WHY ARE THEY ALL JUMPING IN?
Affordable housing developers make money by blending low-income rents with substantial government subsidies, tax credits (especially the LIHTC program), and private investment to cover high development costs, earning revenue through developer fees, project cash flow, asset management, and eventually selling properties or refinancing. Key revenue comes from selling Low-Income Housing Tax Credits (LIHTC) to investors for upfront cash and using grants/loans (HOME, CDBG) to bridge funding gaps, while earning modest operating fees and long-term value from the completed, subsidized project.
Key Revenue Streams & Funding Sources:
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Low-Income Housing Tax Credits (LIHTC): The biggest driver; developers sell these credits to investors (like banks) for equity, getting cash for construction in exchange for providing tax breaks for 10+ years, notes the Urban Institute and the Tax Policy Center.
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Government Subsidies & Grants: Federal programs (HOME, CDBG), state/local funds, and local tax abatements supplement project budgets.
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Developer Fees: A fee built into the project's budget to cover the developer's overhead and staff during construction.
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Project Cash Flow & Asset Management: After development, ongoing rental income (supplemented by tenant vouchers like Section 8) covers operations, with any surplus reinvested or used for management fees.
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Private Equity & Debt: Traditional loans and equity from investors seeking tax benefits (CRA credits) or long-term returns.
How They Make It Work:
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Funding Mix: Developers create complex "capital stacks," layering LIHTC equity, loans, grants, and other subsidies to cover costs (often 20+ sources).
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Tax Credit Sales: Selling LIHTC credits provides critical upfront cash, often 30-40% of project equity, as banks buy them for tax write-offs.
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Subsidized Rents: Government rental assistance (like Section 8) ensures reliable income by paying part of the rent, making projects viable for lenders.
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Long-Term Value: Developers earn fees, manage the property for fees, and build equity, eventually refinancing or selling, leveraging the project's subsidized stability for profit, says Investopedia.
The Profitability Factor:
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Profitability is lower than luxury housing, but it's achieved through volume, efficiency, and leveraging subsidies, notes CalMatters.
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Market shifts, like high-end market slowdowns, can make affordable development more attractive, explains CalMatters.
Try not to fall out of your chair when you read this...
The term “unsubsidized 100% affordable project” was once an oxymoron. Under Mayor Karen Bass, Los Angeles is now approving them by the hundreds via an executive order she signed in 2022. The recent amendments to AB 2011, signed by Gavin Newsome in October of 2025, just add to the pain for homeowners and residential neighborhoods.
While well intended, Karen Bass's Executive Order 1, as well as other housing initiatives have been willfully and widely exploited by developers, resulting in adverse consequences for residential neighborhoods, now including those in severe fire zones.
