UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K


              CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)

                                  July 15, 2004
                 --------------------------------------------------------------



                       Avalon Correctional Services, Inc.
                 --------------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)


         Nevada                        0-20307                       13-3592263
     --------------------------------------------------------------------------
(State or other jurisdiction      (Commission File No.)           (IRS Employer
of incorporation)                                           Identification No.)


                  13401 Railway Drive, Oklahoma City, OK 73114
 ------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                  405-752-8802
 ------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)









                                        1

<PAGE>
                    INFORMATION TO BE INCLUDED IN THE REPORT


Item 5.  Other Events

     Avalon Correctional Services,  Inc., (the "Company") announces that on July
15, 2004, Southern Corrections Systems, Inc., ("SCS"), a wholly owned subsidiary
of the Company, completed a bond financing transaction. Pursuant to the terms of
the  transaction,  Adams County,  Colorado,  issued taxable revenue bonds in the
aggregate  principal  amount of $19.9 million (the "Bonds"),  secured by two SCS
correctional  facilities  in Colorado.  The proceeds of the Bonds were loaned to
SCS under the terms of a Loan Agreement between Adams County,  Colorado and SCS.
The Bonds have  interest  rates  ranging from 8.375% to 10.25% and mature over a
twenty year period.

     Proceeds  from  the  sale of the  Bonds  were  used to fund a debt  service
reserve fund, pay costs and fees  associated  with the  transaction,  and retire
Company debt.


                                    SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                               AVALON CORRECTIONAL SERVICES, INC.

                               s// Donald E.  Smith
                               DONALD E. SMITH
                               Chairman of the Board and Chief Executive Officer

                               Dated:   July 16, 2004

                                        2
<PAGE>
[{"type": "8-K", "sequence": "1", "filename": "k8bond.txt", "description": "FORM 8-K DATED JULY 16, 2004", "secsgml_size_bytes": 3026}]
{"company-data": {"conformed-name": "AVALON CORRECTIONAL SERVICES INC", "cik": "0000872202", "assigned-sic": "8744", "irs-number": "133592263", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-20307", "film-number": "04918594"}, "business-address": {"street1": "13401 RAILWAY DR", "city": "OKLAHOMA CITY", "state": "OK", "zip": "73114", "phone": "4057528802"}, "mail-address": {"street1": "13401 RAILWAY DRIVE", "city": "OKLAHOMA CITY", "state": "OK", "zip": "73114"}, "former-company": [{"former-conformed-name": "AVALON COMMUNITY SERVICES INC", "date-changed": "19930328"}, {"former-conformed-name": "AVALON ENTERPRISES INC", "date-changed": "19600201"}]}
UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

              CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)

                                  July 15, 2004
                 --------------------------------------------------------------

                       Avalon Correctional Services, Inc.
                 --------------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)

         Nevada                        0-20307                       13-3592263
     --------------------------------------------------------------------------
(State or other jurisdiction      (Commission File No.)           (IRS Employer
of incorporation)                                           Identification No.)

                  13401 Railway Drive, Oklahoma City, OK 73114
 ------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                  405-752-8802
 ------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                        1
INFORMATION TO BE INCLUDED IN THE REPORT

Item 5.  Other Events

     Avalon Correctional Services,  Inc., (the "Company") announces that on July
15, 2004, Southern Corrections Systems, Inc., ("SCS"), a wholly owned subsidiary
of the Company, completed a bond financing transaction. Pursuant to the terms of
the  transaction,  Adams County,  Colorado,  issued taxable revenue bonds in the
aggregate  principal  amount of $19.9 million (the "Bonds"),  secured by two SCS
correctional  facilities  in Colorado.  The proceeds of the Bonds were loaned to
SCS under the terms of a Loan Agreement between Adams County,  Colorado and SCS.
The Bonds have  interest  rates  ranging from 8.375% to 10.25% and mature over a
twenty year period.

     Proceeds  from  the  sale of the  Bonds  were  used to fund a debt  service
reserve fund, pay costs and fees  associated  with the  transaction,  and retire
Company debt.

                                    SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                               AVALON CORRECTIONAL SERVICES, INC.

                               s// Donald E.  Smith
                               DONALD E. SMITH
                               Chairman of the Board and Chief Executive Officer

                               Dated:   July 16, 2004

                                        2