Avalon: New Credit Facility

For Immediate Release
June 26, 1998

                         AVALON BAY ANNOUNCES 
            NEW $600M UNSECURED CREDIT FACILITY WITH LOWER PRICING 

        AVALON BAY COMMUNITIES, INC. (NYSE/PCX Symbol: AVB) announced today the
completion of a new unsecured credit facility for $600 million with initial
stated pricing at current rating levels of .75% over LIBOR.  This new facility
replaced the Company's previous $350 million facility that was priced at 0.90%
over LIBOR and the $175 million and $50 million facilities priced at 0.80% over
LIBOR.  Other features include a competitive bid option for up to $400 million,
an extended expiration date of June 23, 2001 and two, one-year extension
options. Under the previous facilities, the competitive bid option was used to
obtain pricing below the stated rate, and management expects to achieve future
pricing below the stated rate under the new facility.  The stated rate adjusts
based on ratings levels achieved on the Company's senior unsecured debt.  The
new facility is provided by a consortium of 18 banks, with JP Morgan, Union
Bank of Switzerland and Fleet Bank serving as co-agents.

Avalon Bay is an equity REIT operating in high barrier-to-entry markets of the
United States.  The Company owns 146 communities totaling 42,074 apartment
homes in 29 distinct markets, of which 17 communities are under construction
and 24 are under redevelopment.  In addition, the Company holds future
development rights for 20 communities.  For more information on Avalon Bay,
visit the Company's website at http://www.avalonbay.com.  For additional
information, please contact Richard L. Michaux, CEO, at (703) 317-4602 or
Thomas J. Sargeant, CFO, at (703) 317-4635.

This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  The words "foreseeable," "expect," "anticipate,"
"estimate," "projected," "budgeted" and other similar expressions which are
predictions of or indicate future events and trends that do not relate solely
to historical matters, including information concerning the Company's estimates
of future Funds from Operations, identify forward-looking statements.  Reliance
should not be placed on forward-looking statements because they involve known
and unknown risks, uncertainties and other factors, which are in some cases
beyond the control of the Company and may cause the actual results, performance
or achievements of the Company to differ materially from anticipated future
results.  Factors that impact the Company's ability to meet these
forward-looking statements include, but are not limited to, the market
acceptance of the Company's new developments, local market conditions, the
ability to achieve projected costs, occupancy levels and revenues, and other
factors discussed periodically in the Company's reports filed with the
Securities and Exchange Commission.




Ends.