AvalonBay CommunitiesDiscussion on Inclusionary Zoning

May, 2014

Avalon Danvers – 433 Apts.

Completed 2008

Avalon Exeter – 187 Apts.

To Be Completed 2014

Avalon Natick – 407 Apts.

Completed 2013

Avalon Cohasset – 220 Apts.

Completed 2012

Avalon Natick – 407 Apts.Avalon Danvers – 433 Apts.

Avalon Cohasset – 220 Apts.

AVALONBAY BOSTON REGIONAL SUMMARY

Current Boston Area Portfolio: 8,458 apartments in 25 communities.

Communities Under Construction: 1,679 apartments in 6 communities representing an investment of over $550 Million.

Developments in Pipeline: 1,634 apartments in 5 communities representing an investment of over $500 Million.

Since 1994, AvalonBay has developed 7,219 apartment homes in 31 communities representing an investment of over $1.2 Billion.

Over 80% of these developments subject to Inclusionary Zoning.

AvalonBay Boston Regional Summary

Apartment Homes: ~187

Status: Under Construction

Capitalization: ~$100 Million +

Average SF: ~1,069

Overview:

28-story high rise located in Boston’s Back Bay

Neighborhood. Development is the result of a 10+

year effort between AvalonBay and the City of

Boston as part of the Prudential Center

redevelopment.

Inclusionary Zoning: Case StudyAvalon Exeter

Mayor’s Executive Order for Affordable Housing:

15% of market units affordable, onsite

or

$200,000 per unit for 15% of units, offsite

AvalonBay currently owns 781 apartments at the

Prudential Center.

A unique opportunity to maximize affordable

housing program in the Back Bay.

Avalon Exeter

Key Elements to expanding affordable housing

program:

Under Mayor’s Ordinance, 15% of market units, or 24

apartments located on site.

Expand program by including more units on lower

floors.

Expand program by shifting apartments to existing

towers.

Result: Avalon Exeter program provides 46

affordable apartments, almost 2x’s the required

amount.

Avalon Exeter

Avalon Stuart Street

Boston, MA

Under Construction: 398 Apartments, 2015 Completion