<SUBMISSION>
<ACCESSION-NUMBER>0000950133-04-001278
<TYPE>11-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20031231
<FILING-DATE>20040402
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AVALONBAY COMMUNITIES INC
<CIK>0000915912
<ASSIGNED-SIC>6798
<IRS-NUMBER>770404318
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>11-K
<ACT>34
<FILE-NUMBER>001-12672
<FILM-NUMBER>04710867
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2900 EISENHOWER AVENUE
<STREET2>SUITE 300
<CITY>ALEXANDRIA
<STATE>VA
<ZIP>22314
<PHONE>7033296300
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2900 EISENHOWER AVENUE
<STREET2>STE 300
<CITY>ALEXANDRIA
<STATE>VA
<ZIP>22314
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>AVALON BAY COMMUNITIES INC
<DATE-CHANGED>19980618
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>BAY APARTMENT COMMUNITIES INC
<DATE-CHANGED>19931208
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>w95685e11vk.htm
<DESCRIPTION>FORM 11-K
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 14pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="25%" align="#">


<P align="center" style="font-size: 18pt"><B>FORM 11-K</B>


<P align="center" style="font-size: 10pt">ANNUAL REPORT<BR>
PURSUANT TO SECTION 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934


<P align="left" style="font-size: 10pt">(Mark One)



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT> ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 &#091;NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996&#093;.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal year ended December&nbsp;31, 2003




<P align="center" style="font-size: 10pt">OR



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 &#091;NO FEE REQUIRED&#093;.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the transition period from <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U> to <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission file number 1-12672


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Full title of the plan and the address of the plan, if different from
that of the issuer named below:


<P align="center" style="font-size: 10pt">AvalonBay Communities, Inc.<BR>
1996 Non-Qualified Employee Stock Purchase Plan<BR>
<HR size="1" noshade width="55%" align="#">


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AvalonBay Communities, Inc.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2900 Eisenhower Ave., Suite&nbsp;300<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alexandria, VA 22314


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">REPORT OF INDEPENDENT AUDITORS



<P align="left" style="font-size: 10pt">To The Compensation Committee of the Board of Directors<BR>
AvalonBay Communities, Inc.<BR>
1996 Non-Qualified Employee Stock Purchase Plan:

<P align="left" style="font-size: 10pt">We have audited the accompanying statements of financial condition of the
AvalonBay Communities, Inc. 1996 Non-Qualified Employee Stock Purchase Plan as
amended and restated (the Plan) as of December&nbsp;31, 2003 and 2002, and the
related statements of changes in plan equity for the years then ended. These
financial statements are the responsibility of the Plan&#146;s management. Our
responsibility is to express an opinion on these financial statements based on
our audits. The financial statements of the Plan as of and for the year ended
December&nbsp;31, 2001 were audited by other auditors who have ceased operations and
whose report dated March&nbsp;25, 2002, expressed an unqualified opinion on those
statements.


<P align="left" style="font-size: 10pt">We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.


  <P align="left" style="font-size: 10pt">In our opinion, the financial statements
    referred to above present fairly, in all material respects, the financial
    condition of the Plan at December&nbsp;31, 2003 and 2002, and the changes
    in plan equity for the years then ended, in conformity with accounting principles
    generally accepted in the United States.
  <P align="right" style="font-size: 10pt">/s/ Ernst &amp; Young LLP
  <P align="left" style="font-size: 10pt">McLean, Virginia<BR>
March&nbsp;26, 2004


<P align="center" style="font-size: 10pt">1
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



<P align="left" style="font-size: 10pt">To The Compensation Committee of the Board of Directors<BR>
AvalonBay Communities, Inc.<BR>
1996 Non-Qualified Employee Stock Purchase Plan:

<P align="left" style="font-size: 10pt">We have audited the accompanying statements of financial condition of the
AvalonBay Communities, Inc. 1996 Non-Qualified Employee Stock Purchase Plan as
amended and restated (the Plan) as of December&nbsp;31, 2001 and 2000, and the
related statements of changes in plan equity for each of the three years in the
period ended December&nbsp;31, 2001. These financial statements are the
responsibility of the Plan&#146;s management. Our responsibility is to express an
opinion on these financial statements based on our audits.


<P align="left" style="font-size: 10pt">We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.


<P align="left" style="font-size: 10pt">In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial condition of the Plan at December&nbsp;31, 2001
and 2000, and the changes in plan equity for each of the three years in the
period ended December&nbsp;31, 2001, in conformity with accounting principles
generally accepted in the United States.



<P align="right" style="font-size: 10pt">/s/ Arthur Andersen LLP



<P align="left" style="font-size: 10pt">Vienna, Virginia<BR>
March&nbsp;25, 2002
<P align="left" style="font-size: 10pt">&nbsp;
<P align="left" style="font-size: 10pt">Note: The report of Arthur Andersen LLP is a copy of a previously issued
report that has not been reissued by Arthur Andersen LLP. The report of Ernst
&#038; Young LLP relates to the years ended December&nbsp;31, 2003 and 2002.
Consequently, the report of Arthur Andersen LLP, which is the most recently
issued report by Arthur Andersen LLP, relates to the year ended December&nbsp;31,
2001.



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">AVALONBAY COMMUNITIES, INC.<BR>
1996 NON-QUALIFIED EMPLOYEE STOCK PURCHASE PLAN<BR>
STATEMENTS OF FINANCIAL CONDITION


<DIV align="center">
    <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="65%">
      <!-- Begin Table Head -->
      <TR valign="bottom">
        <TD width="84%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
      </TR>
      <TR style="font-size: 8pt" valign="bottom">
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD colspan="3" align="left" valign="top" nowrap> <div align="center">12-31-03</div>
          <HR size="1" noshade> </TD>
        <TD>&nbsp;</TD>
        <TD nowrap align="center" colspan="3">12-31-02
          <HR size="1" noshade></TD>
      </TR>
      <!-- End Table Head -->
      <!-- Begin Table Body -->
      <TR valign="bottom" style="background: #eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px">Assets:</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px">Receivable from AvalonBay
            Communities, Inc.:</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom" style="background: #eeeeee">
        <TD><DIV style="margin-left:20px; text-indent:-10px">Participant contributions</DIV></TD>
        <TD><div align="right">$</div></TD>
        <TD align="right">&nbsp;</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
        <TD><div align="right">$</div></TD>
        <TD align="right">&nbsp;</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom">
        <TD><DIV style="margin-left:20px; text-indent:-10px">Employer contributions</DIV></TD>
        <TD><div align="right"></div></TD>
        <TD>&nbsp;</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
        <TD><div align="right"></div></TD>
        <TD>&nbsp;</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR style="font-size: 1px">
        <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
        <TD><div align="right"></div></TD>
        <TD colspan="3"><HR size="1" noshade> &nbsp;</TD>
        <TD><div align="right"></div></TD>
        <TD colspan="3"><HR size="1" noshade> &nbsp;</TD>
      </TR>
      <TR valign="bottom" style="background: #eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px">Plan equity</DIV></TD>
        <TD><div align="right">$</div></TD>
        <TD align="right">&nbsp;</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
        <TD><div align="right">$</div></TD>
        <TD align="right">&nbsp;</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR style="font-size: 1px">
        <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
        <TD valign="bottom">&nbsp;</TD>
        <TD colspan="3" align="left" valign="top" nowrap> <div align="center"></div>
          <HR size="4" noshade> </TD>
        <TD valign="bottom">&nbsp;</TD>
        <TD colspan="3" align="center" valign="bottom" nowrap>
          <HR size="4" noshade></TD>
      </TR>
      <!-- End Table Body -->
    </TABLE>
</DIV>



<P align="center" style="font-size: 10pt">See accompanying notes to financial statements.



<P align="center" style="font-size: 10pt">3
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">AVALONBAY COMMUNITIES, INC.<BR>
1996 NON-QUALIFIED EMPLOYEE STOCK PURCHASE PLAN<BR>
STATEMENTS OF CHANGES IN PLAN EQUITY

<DIV align="center">
    <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">
      <!-- Begin Table Head -->
      <TR valign="bottom">
        <TD width="70%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
      </TR>
      <TR style="font-size: 8pt" valign="bottom">
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD nowrap align="center" colspan="11">For the year ended <HR size="1" noshade></TD>
      </TR>
      <TR style="font-size: 8pt" valign="bottom">
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD nowrap align="center" colspan="3">12-31-03 <HR size="1" noshade></TD>
        <TD>&nbsp;</TD>
        <TD nowrap align="center" colspan="3">12-31-02 <HR size="1" noshade></TD>
        <TD>&nbsp;</TD>
        <TD nowrap align="center" colspan="3">12-31-01 <HR size="1" noshade></TD>
      </TR>
      <!-- End Table Head -->
      <!-- Begin Table Body -->
      <TR valign="bottom" style="background: #eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px">Plan equity at the
            beginning of the year</DIV></TD>
        <TD>&nbsp;</TD>
        <TD align="right">$</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">$</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">$</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px">Additions:</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom" style="background: #eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;&nbsp;&nbsp;Participant contributions</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">491,226</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">940,359</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">572,388</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;&nbsp;&nbsp;Employer contributions</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">196,759</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">165,946</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">101,030</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR style="font-size: 1px">
        <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="1" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="1" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="1" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom" style="background: #eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;&nbsp;&nbsp;Total additions</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">687,985</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">1,106,305</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">673,418</TD>
        <TD>&nbsp;</TD>
      </TR>

<TR><TD>&nbsp;</TD></TR>
      <TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px">Deductions:</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom" style="background: #eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;&nbsp;&nbsp;Purchase and distribution
            of common stock to participants</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">687,985</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">1,106,305</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">673,418</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR style="font-size: 1px">
        <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="1" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="1" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="1" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px">Plan equity at the
            end of the year</DIV></TD>
        <TD>&nbsp;</TD>
        <TD align="right">$</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">$</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right">$</TD>
        <TD align="right">&#151;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <TR style="font-size: 1px">
        <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="4" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="4" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="right"><HR size="4" noshade> &nbsp;</TD>
        <TD>&nbsp;</TD>
      </TR>
      <!-- End Table Body -->
    </TABLE>
</DIV>



  <P align="center" style="font-size: 10pt">See accompanying notes to financial
    statements.
  <P align="center" style="font-size: 10pt">4 </DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


  <P align="center" style="font-size: 10pt">&nbsp;
<P align="center" style="font-size: 10pt">AVALONBAY COMMUNITIES, INC.<BR>
1996 NON-QUALIFIED EMPLOYEE STOCK PURCHASE PLAN<BR>
NOTES TO FINANCIAL STATEMENTS



<P align="left" style="font-size: 10pt">1. <u>The Plan</u>


<P align="left" style="font-size: 10pt">In October&nbsp;1996, Bay Apartment Communities, Inc. (&#147;Bay&#148;) adopted the 1996
Non-Qualified Employee Stock Purchase Plan, as amended and restated (the
&#147;Plan&#148;). On June&nbsp;4, 1998, Avalon Properties, Inc. merged with and into Bay,
and in connection with such merger Bay was renamed AvalonBay Communities, Inc.
(the &#147;Company&#148;). The primary purpose of the Plan is to encourage common stock
ownership by eligible directors and associates (the &#147;Participants&#148;) in the
belief that such ownership will increase each Participant&#146;s interest in the
success of the Company. From January&nbsp;1, 2001 to January&nbsp;1, 2003, the Plan
provided for one purchase period per year, which began May 1 and ended October
31. Beginning on January&nbsp;1, 2003, the Plan was amended to provide for one
seven-month purchase period beginning on May 1 and ending on November&nbsp;30.
Participants may contribute portions of their compensation during a purchase
period and purchase common stock at the end thereof. Participation in the Plan
entitles each Participant to purchase the Company&#146;s common stock at 85% of the
lesser of the fair market value on the first business day of the applicable
purchase period or the last business day of the applicable purchase period.


<P align="left" style="font-size: 10pt">The Company has reserved 1,000,000 shares of common stock for Participants
under the Plan of which 687,949 were available for issuance at December&nbsp;31,
2003.


<P align="left" style="font-size: 10pt"><I>Participant Contributions</I>


<P align="left" style="font-size: 10pt">Full time employees who have completed one month of service with the Company as
of the last day of the applicable election period are eligible to participate
in the Plan. Part time employees who have worked for the Company at least
1,000 hours during the twelve consecutive months preceding enrollment in the
Plan are also eligible to participate. Contributions may be made to the Plan
by employees by payroll withholding only. Directors who have completed one
month as a member of the Board of Directors are eligible to participate in the
Plan by making cash payments at any time during each purchase period.
Participants elect to participate in the Plan by completing and submitting an
election form to the Company as plan administrator (the &#147;Plan Administrator&#148;).


<P align="left" style="font-size: 10pt"><I>Employer Contributions</I>


<P align="left" style="font-size: 10pt">Employer contributions represent the discount or aggregate difference between
the market value of the Company&#146;s common stock at the end of a purchase period
and the established discounted purchase price.


<P align="left" style="font-size: 10pt"><I>Distributions</I>


<P align="left" style="font-size: 10pt">The Company&#146;s transfer agent and registrar issues shares of common stock upon
receipt of Participant and Company contributions. The transfer agent and
registrar issues stock certificates to a Participant upon his or her written
request. Accordingly, all shares purchased under the provisions of the Plan
are deemed to be immediately distributed to the Participants. Participants
generally may not sell shares they acquire under the Plan until at least six
months have elapsed from the date of purchase.


<P align="left" style="font-size: 10pt"><I>Withdrawals</I>


<P align="left" style="font-size: 10pt">A Participant may withdraw all or any part of the contributions made during a
purchase period by delivering an amended election form to the Plan
Administrator on or before the last day of such purchase period. Upon such a
withdrawal, the Participant may no longer have amounts withheld from payroll
and contributed to the Plan during that purchase period. Participant
contributions on the accompanying Statements of Changes in Plan Equity are net
of any withdrawals made during the purchase periods shown.



<P align="center" style="font-size: 10pt">5
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><I>Plan Termination</I>


<P align="left" style="font-size: 10pt">The Board of Directors of the Company (the &#147;Board&#148;) may terminate this Plan and
any purchase period at any time (together with any related contribution
elections), provided, however, no such termination shall be retroactive unless
the Board determines that applicable law requires a retroactive termination of
this Plan.



<P align="left" style="font-size: 10pt">2. <u>Summary of Significant Accounting Policies</u>



<P align="left" style="font-size: 10pt"><I>Basis of Accounting</I>


<P align="left" style="font-size: 10pt">The accompanying financial statements have been prepared on the accrual basis
of accounting.



<P align="left" style="font-size: 10pt"><I>Administrative Expenses</I>


<P align="left" style="font-size: 10pt">All administrative expenses of the Plan are paid by the Company.



<P align="left" style="font-size: 10pt"><I>Distributions</I>


<P align="left" style="font-size: 10pt">Distributions are recorded when common stock has been distributed to
Participants.



<P align="left" style="font-size: 10pt">3. <u>Internal Revenue Service Status</u>


<P align="left" style="font-size: 10pt">The Plan is not a qualified plan under Section 423(b) of the Internal Revenue
Code. Participants are subject to any required tax withholding by the Company
on the taxable compensation earned under the Plan. Taxable compensation is
determined as the difference between the discounted price paid by the
Participant and the average of the high and low market price of the shares on
the New York Stock Exchange on the date of purchase.



<P align="left" style="font-size: 10pt">4. <u>Distributions</u>


<P align="left" style="font-size: 10pt">The following table summarizes stock purchased and distributed for the
respective purchase periods:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="75%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="53%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Date of purchase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">11-30-03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">11-01-02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">11-01-01</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Purchase period end</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">11-30-03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">10-31-02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">10-31-01</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Participant contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">491,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">940,359</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">572,388</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Employer contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,030</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Market value of stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">687,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,106,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">673,418</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Market value of stock purchased and
distributed per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">47.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">37.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45.40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Shares purchased and distributed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,833</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt">SIGNATURE


<P align="left" style="font-size: 10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Plan Administrator has duly caused this annual report to be signed
on its behalf by the undersigned hereunto duly authorized.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="29%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">AVALONBAY COMMUNITIES, INC.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">1996 NON-QUALIFIED EMPLOYEE</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">STOCK PURCHASE PLAN</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">By: AvalonBay Communities, Inc.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: April
            1, 2004 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD align="left" valign="bottom">/s/ Thomas J. Sargeant</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Thomas J. Sargeant, Chief Financial Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">7
</DIV>




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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>w95685exv23w1.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
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<P align="left" style="font-size: 10pt">Exhibit&nbsp;23.1


<P align="center" style="font-size: 10pt">Consent of Ernst &#038; Young LLP, Independent Auditors


  <P align="left" style="font-size: 10pt">We consent to the incorporation by reference
    in the Registration Statement on Form S-8 (File No.&nbsp;333-16837) pertaining
    to the 1996 Non-Qualified Employee Stock Purchase Plan of AvalonBay Communities,
    Inc. of our report dated March 26, 2004, with respect to the financial statements
    of the AvalonBay Communities, Inc. 1996 Non-Qualified Employee Stock Purchase
    Plan included in this Annual Report <br>
    (Form 11-K) for the year ended December&nbsp;31, 2003.
  <P align="right" style="font-size: 10pt">/s/ Ernst &amp; Young LLP
  <P align="left" style="font-size: 10pt">McLean, Virginia<BR>
March&nbsp;26, 2004



<P align="center" style="font-size: 10pt">
</DIV>



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