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  <p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b><font size="5" face="Times New Roman" style="font-size:18.0pt;"><br>
  <b>SECURITIES AND EXCHANGE COMMISSION</b></font></p><p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington, D.C. 20549</font></b></p><p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></p><p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b><font size="3" face="Times New Roman" style="font-size:12.0pt;"><br>
  <b>Pursuant to Section&nbsp;13 or 15(d)&nbsp;of</b><br>
  <b>the Securities Exchange Act of 1934</b></font></p><p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date of Report (Date of earliest event reported) &#160;May&nbsp;21, 2008</font></b></p><p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">AVALONBAY
  COMMUNITIES, INC.</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact Name of Registrant as Specified in Its Charter)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
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   <tr>
    <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Maryland</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or Other Jurisdiction of Incorporation)</font></p>
    </td>
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    <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1-12672</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">77-0404318</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File Number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer Identification No.)</font></p>
    </td>
   </tr>
  </table>
  
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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   <tr>
    <td width="48%" valign="top" style="padding:0in 0in 0in 0in;width:48.92%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2900 Eisenhower Avenue, Suite&nbsp;300,
    Alexandria, Virginia</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.06%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">22314</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="48%" valign="top" style="padding:0in 0in 0in 0in;width:48.92%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of Principal Executive Offices)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.06%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
    </td>
   </tr>
  </table>
  
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="100%" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant&#146;s telephone number, including area code&nbsp;&nbsp;<b>(703) 329-6300</b></font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></p><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .3in;text-indent:-.25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Written communications
  pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</font></p>
  
  <p style="margin:0in 0in .0001pt .3in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .3in;text-indent:-.25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Soliciting material pursuant
  to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
  
  <p style="margin:0in 0in .0001pt .3in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .3in;text-indent:-.25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Pre-commencement
  communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act
  (17&nbsp;CFR&nbsp;240.14d-2(b))</font></p>
  
  <p style="margin:0in 0in .0001pt .3in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .3in;text-indent:-.25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Pre-commencement
  communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act
  (17&nbsp;CFR&nbsp;240.13e-4(c))</font></p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\brosent\08-14920-1\task2955545\14920-1-ba.htm',USER='brosent',CD='May 22 15:03 2008' -->
  
  
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM 5.02.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DEPARTURE
  OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF
  PRINCIPAL OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.</b></p>
  
  <p style="margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  Company&#146;s Board of Directors and its Compensation Committee have approved the
  implementation of a multiyear performance plan (the &#147;2008 Performance Plan&#148;).&#160; Effective June&nbsp;1, 2008, awards in
  connection with this plan will be made to senior management and other selected
  officers (&#147;2008 Performance Plan Awards&#148;).</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2008
  Performance Plan Awards are initially in the form of Deferred Stock Awards,
  with no dividend rights, granted under the Company&#146;s Amended and Restated 1994
  Stock Incentive Plan (the &#147;1994 Plan&#148;).&#160;
  These Deferred Stock Awards will be forfeited in their entirety unless
  the Company&#146;s total return to shareholders, consisting of stock price appreciation
  plus cumulative dividends without reinvestment or compounding (the &#147;Actual TRS&#148;),
  over the measurement period exceeds both (i)&nbsp;an Absolute TRS Target and (ii)&nbsp;a
  Relative TRS Target, as described below.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each
  participating officer&#146;s 2008 Performance Plan Award is designated as a
  specified &#147;Participation Percentage&#148; in the plan.&#160;&#160; If both TRS targets are exceeded at the end
  of the measurement period, then each participating officer will earn Deferred
  Stock Awards having a total value (based on the closing price of the Company&#146;s
  Common Stock on the last day of the measurement period) equal to that officer&#146;s
  Participation Percentage multiplied by the Total Funding Pool.&#160; The determination of the Total Funding Pool
  is described below, but in all events will not exceed $60 million.&#160; Any unearned Deferred Stock Awards (i.e.,
  Deferred Stock Awards in excess of the number of awards having a value equal to
  that officer&#146;s Participation Percentage in the Total Funding Pool) will be
  forfeited.&#160; Earned Deferred Stock Awards
  will convert into vested unrestricted common stock (50%), and unvested
  restricted common stock with a one-year vesting period (50%), subject to
  earlier forfeiture or acceleration under certain circumstances as described
  below.&#160; Dividends will be paid on both
  the unrestricted common stock and the restricted common stock.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  measurement period of the 2008 Performance Plan begins on June&nbsp;1, 2008
  with a starting common stock price equal to the average closing price of the
  Company&#146;s common stock on the twenty trading days prior to June&nbsp;1,
  2008.&#160; The measurement period will end
  three years later, on May&nbsp;31, 2011, again using a twenty day average
  closing price.&#160; The measurement period
  will end earlier upon a change in control of the Company.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  Absolute TRS Target that must be exceeded during the measurement period is 32%
  (or a pro rated amount in the event the measurement period is less than three
  years due to a change in control).&#160; The
  Relative TRS Target that must be exceeded is the total return performance
  (stock price appreciation plus cumulative dividends without reinvestment or
  compounding) during the measurement period of the FTSE NAREIT Apartment
  Index.&#160;&#160; If the Actual TRS exceeds both
  the Absolute TRS Target and the Relative TRS Target, the Total Funding Pool
  will equal 10% of the simple average of (i)&nbsp;the excess shareholder value
  created by the Actual TRS exceeding the Absolute TRS Target and (ii)&nbsp;the
  excess shareholder value created by the Actual TRS exceeding the Relative TRS
  Target, provided that in no event will the Total Funding Pool exceed $60
  million.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  Company has allocated the following Participation Percentages to the Company&#146;s
  named executive officers:&#160; Bryce Blair,
  Chairman and Chief Executive Officer, 15.01%; Timothy J. Naughton, President,
  12.51%; Thomas J. Sargeant, Chief Financial Officer, 5.33%; Leo S. Horey,
  Executive Vice President &#150; Property Operations, 5.33%; Edward M. Schulman,
  Senior Vice President-General Counsel, 3.55%.&#160;
  Other selected officers were awarded Participation Percentages totaling
  53.27%, and a reserve of 5.0% was established for possible future 2008
  Performance Plan Awards.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\brosent\08-14920-1\task2955545\14920-1-ba.htm',USER='brosent',CD='May 22 15:03 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2008
  Performance Plan Awards are subject to forfeiture or accelerated vesting under
  the following circumstances:</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During
  the first two years (one year in the case of Messrs.&nbsp;Blair, Naughton,
  Sargeant and Horey) of the three-year performance measurement period, awards
  will be forfeited in full if the participant ceases to be employed by the
  Company under any circumstance.&#160; If a
  participant&#146;s employment is terminated after the second year (the first year in
  the case of the aforementioned officers) as a result of death, disability (as
  defined in the 1994 Plan) or retirement (as defined in the 1994 Plan) or is
  terminated by us without cause, the participant will earn a pro rated fully
  vested award (i.e., unrestricted common stock) at the end of the performance
  period.&#160; For example, if termination without
  cause occurs after two years, and if there is a performance award payout at the
  end of the three-year performance period, the participant will receive a 66.7%
  pro rated fully vested award at that time.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
  the event of a change in control at any time, the measurement period will end
  and, if any Deferred Stock Awards are earned (i.e., the Total Funding Pool is
  determined to be greater than zero), then all earned awards will be fully
  vested.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any
  unvested restricted stock awards that are issued at the end of the measurement
  period (i)&nbsp;will be forfeited before the one-year vesting period in the
  event the participant is terminated for cause or voluntarily terminates
  employment, and (ii)&nbsp;will accelerate and become fully vested before the
  one-year vesting period in the event of a termination due to death, disability,
  termination without cause or retirement, or in the event of a change in
  control.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All
  determinations, interpretations and assumptions relating to the calculation of
  performance and vesting relating to 2008 Performance Plan Awards will be made
  by the Compensation Committee.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  2008 Performance Plan Awards will be made pursuant to a form of 2008
  Performance Award Agreement, which is filed as Exhibit&nbsp;10.1 to this
  report.&#160; The foregoing summary of the
  2008 Performance Plan Awards is qualified in its entirety by reference to the
  form of award agreement.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2008
  Performance Plan Awards will not count in the calculation of the &#147;covered
  compensation&#148; multiplier for severance purposes under the employment agreements
  of Messrs.&nbsp;Blair, Naughton, Sargeant or Horey (the &#147;Employment Agreements&#148;).&#160; This and other clarifications regarding the
  effect of a termination under the Employment Agreements on the 2008 Performance
  Plan Awards awarded to Messrs.&nbsp;Blair, Naughton, Sargeant and Horey, will
  be reflected in amendments to the Employment Agreements in the form filed as Exhibit&nbsp;10.2
  to this report.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM
  9.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Financial Statements and
  Exhibits</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exhibits.</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.16%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="89%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:89.16%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:89.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of AvalonBay
    Communities,&nbsp;Inc. 2008 Performance Plan Deferred Stock Award Agreement
    (filed herewith)</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of Second
    Amendment to Employment Agreements between AvalonBay Communities,&nbsp;Inc.
    and Certain Executive Officers (filed herewith)</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\brosent\08-14920-1\task2955545\14920-1-ba.htm',USER='brosent',CD='May 22 15:03 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></u></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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 hereunto duly authorized.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.58%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AVALONBAY
    COMMUNITIES, INC.</font></p>
    </td>
   </tr>
   <tr>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.58%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.58%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">May&nbsp;22, 2008</font></p>
    </td>
    <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.58%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.6%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="51%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:51.82%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
    Thomas J. Sargeant</font></p>
    </td>
   </tr>
   <tr>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.58%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.68%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
    </td>
    <td width="49%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thomas
    J. Sargeant</font></p>
    </td>
   </tr>
   <tr>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.58%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:4.84%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.58%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p>
    </td>
   </tr>
   <tr height="0">
    <td width="333" style="border:none;"></td>
    <td width="27" style="border:none;"></td>
    <td width="9" style="border:none;"></td>
    <td width="6" style="border:none;"></td>
    <td width="372" style="border:none;"></td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\brosent\08-14920-1\task2955545\14920-1-ba.htm',USER='brosent',CD='May 22 15:03 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT
  INDEX</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.5%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="89%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:89.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:89.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of AvalonBay Communities,&nbsp;Inc. 2008
    Performance Plan Deferred Stock Award Agreement (filed herewith)</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of Second Amendment to Employment
    Agreements between AvalonBay Communities,&nbsp;Inc. and Certain Executive
    Officers (filed herewith)</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\brosent\08-14920-1\task2955545\14920-1-ba.htm',USER='brosent',CD='May 22 15:03 2008' -->
  
  
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metadata_filer: {"company-data": {"conformed-name": "AVALONBAY COMMUNITIES INC", "cik": "0000915912", "assigned-sic": "6798", "irs-number": "770404318", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12672", "film-number": "08855011"}, "business-address": {"street1": "2900 EISENHOWER AVENUE", "street2": "SUITE 300", "city": "ALEXANDRIA", "state": "VA", "zip": "22314", "phone": "7033296300"}, "mail-address": {"street1": "2900 EISENHOWER AVENUE", "street2": "STE 300", "city": "ALEXANDRIA", "state": "VA", "zip": "22314"}, "former-company": [{"former-conformed-name": "AVALON BAY COMMUNITIES INC", "date-changed": "19980618"}, {"former-conformed-name": "BAY APARTMENT COMMUNITIES INC", "date-changed": "19931208"}]}
text: 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)  May 21, 2008
  AVALONBAY
  COMMUNITIES, INC.
  (Exact Name of Registrant as Specified in Its Charter)
  Maryland
  (State or Other Jurisdiction of Incorporation)
  1-12672
  77-0404318
  (Commission File Number)
  (I.R.S. Employer Identification No.)
  2900 Eisenhower Avenue, Suite 300,
    Alexandria, Virginia
  22314
  (Address of Principal Executive Offices)
  (Zip Code)
  Registrant's telephone number, including area code
  (703) 329-6300
  Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
  o
  Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  o
  Soliciting material pursuant
  to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act
  (17 CFR 240.14d-2(b))
  o
  Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act
  (17 CFR 240.13e-4(c))
  ITEM 5.02.
  DEPARTURE
  OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF
  PRINCIPAL OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
  The
  Company's Board of Directors and its Compensation Committee have approved the
  implementation of a multiyear performance plan (the "2008 Performance Plan").  Effective June 1, 2008, awards in
  connection with this plan will be made to senior management and other selected
  officers ("2008 Performance Plan Awards").
  2008
  Performance Plan Awards are initially in the form of Deferred Stock Awards,
  with no dividend rights, granted under the Company's Amended and Restated 1994
  Stock Incentive Plan (the "1994 Plan"). 
  These Deferred Stock Awards will be forfeited in their entirety unless
  the Company's total return to shareholders, consisting of stock price appreciation
  plus cumulative dividends without reinvestment or compounding (the "Actual TRS"),
  over the measurement period exceeds both (i) an Absolute TRS Target and (ii) a
  Relative TRS Target, as described below.
  Each
  participating officer's 2008 Performance Plan Award is designated as a
  specified "Participation Percentage" in the plan.   If both TRS targets are exceeded at the end
  of the measurement period, then each participating officer will earn Deferred
  Stock Awards having a total value (based on the closing price of the Company's
  Common Stock on the last day of the measurement period) equal to that officer's
  Participation Percentage multiplied by the Total Funding Pool.  The determination of the Total Funding Pool
  is described below, but in all events will not exceed $60 million.  Any unearned Deferred Stock Awards (i.e.,
  Deferred Stock Awards in excess of the number of awards having a value equal to
  that officer's Participation Percentage in the Total Funding Pool) will be
  forfeited.  Earned Deferred Stock Awards
  will convert into vested unrestricted common stock (50%), and unvested
  restricted common stock with a one-year vesting period (50%), subject to
  earlier forfeiture or acceleration under certain circumstances as described
  below.  Dividends will be paid on both
  the unrestricted common stock and the restricted common stock.
  The
  measurement period of the 2008 Performance Plan begins on June 1, 2008
  with a starting common stock price equal to the average closing price of the
  Company's common stock on the twenty trading days prior to June 1,
  2008.  The measurement period will end
  three years later, on May 31, 2011, again using a twenty day average
  closing price.  The measurement period
  will end earlier upon a change in control of the Company.
  The
  Absolute TRS Target that must be exceeded during the measurement period is 32%
  (or a pro rated amount in the event the measurement period is less than three
  years due to a change in control).  The
  Relative TRS Target that must be exceeded is the total return performance
  (stock price appreciation plus cumulative dividends without reinvestment or
  compounding) during the measurement period of the FTSE NAREIT Apartment
  Index.   If the Actual TRS exceeds both
  the Absolute TRS Target and the Relative TRS Target, the Total Funding Pool
  will equal 10% of the simple average of (i) the excess shareholder value
  created by the Actual TRS exceeding the Absolute TRS Target and (ii) the
  excess shareholder value created by the Actual TRS exceeding the Relative TRS
  Target, provided that in no event will the Total Funding Pool exceed $60
  million.
  The
  Company has allocated the following Participation Percentages to the Company's
  named executive officers:  Bryce Blair,
  Chairman and Chief Executive Officer, 15.01%; Timothy J. Naughton, President,
  12.51%; Thomas J. Sargeant, Chief Financial Officer, 5.33%; Leo S. Horey,
  Executive Vice President – Property Operations, 5.33%; Edward M. Schulman,
  Senior Vice President-General Counsel, 3.55%. 
  Other selected officers were awarded Participation Percentages totaling
  53.27%, and a reserve of 5.0% was established for possible future 2008
  Performance Plan Awards.
  2
  2008
  Performance Plan Awards are subject to forfeiture or accelerated vesting under
  the following circumstances:
  During
  the first two years (one year in the case of Messrs. Blair, Naughton,
  Sargeant and Horey) of the three-year performance measurement period, awards
  will be forfeited in full if the participant ceases to be employed by the
  Company under any circumstance.  If a
  participant's employment is terminated after the second year (the first year in
  the case of the aforementioned officers) as a result of death, disability (as
  defined in the 1994 Plan) or retirement (as defined in the 1994 Plan) or is
  terminated by us without cause, the participant will earn a pro rated fully
  vested award (i.e., unrestricted common stock) at the end of the performance
  period.  For example, if termination without
  cause occurs after two years, and if there is a performance award payout at the
  end of the three-year performance period, the participant will receive a 66.7%
  pro rated fully vested award at that time.
  In
  the event of a change in control at any time, the measurement period will end
  and, if any Deferred Stock Awards are earned (i.e., the Total Funding Pool is
  determined to be greater than zero), then all earned awards will be fully
  vested.
  Any
  unvested restricted stock awards that are issued at the end of the measurement
  period (i) will be forfeited before the one-year vesting period in the
  event the participant is terminated for cause or voluntarily terminates
  employment, and (ii) will accelerate and become fully vested before the
  one-year vesting period in the event of a termination due to death, disability,
  termination without cause or retirement, or in the event of a change in
  control.
  All
  determinations, interpretations and assumptions relating to the calculation of
  performance and vesting relating to 2008 Performance Plan Awards will be made
  by the Compensation Committee.
  The
  2008 Performance Plan Awards will be made pursuant to a form of 2008
  Performance Award Agreement, which is filed as Exhibit 10.1 to this
  report.  The foregoing summary of the
  2008 Performance Plan Awards is qualified in its entirety by reference to the
  form of award agreement.
  2008
  Performance Plan Awards will not count in the calculation of the "covered
  compensation" multiplier for severance purposes under the employment agreements
  of Messrs. Blair, Naughton, Sargeant or Horey (the "Employment Agreements").  This and other clarifications regarding the
  effect of a termination under the Employment Agreements on the 2008 Performance
  Plan Awards awarded to Messrs. Blair, Naughton, Sargeant and Horey, will
  be reflected in amendments to the Employment Agreements in the form filed as Exhibit 10.2
  to this report.
  ITEM
  9.01             Financial Statements and
  Exhibits
  (c)
  Exhibits.
  Exhibit No.
  Description
  10.1
  Form of AvalonBay
    Communities, Inc. 2008 Performance Plan Deferred Stock Award Agreement
    (filed herewith)
  10.2
  Form of Second
    Amendment to Employment Agreements between AvalonBay Communities, Inc.
    and Certain Executive Officers (filed herewith)
  3
  SIGNATURES
  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 hereunto duly authorized.
  AVALONBAY
    COMMUNITIES, INC.
  May 22, 2008
  By:
  /s/
    Thomas J. Sargeant
  Name:
  Thomas
    J. Sargeant
  Title:
  Chief Financial Officer
  4
  EXHIBIT
  INDEX
  Exhibit No.
  Description
  10.1
  Form of AvalonBay Communities, Inc. 2008
    Performance Plan Deferred Stock Award Agreement (filed herewith)
  10.2
  Form of Second Amendment to Employment
    Agreements between AvalonBay Communities, Inc. and Certain Executive
    Officers (filed herewith)
  5