AvalonBay Communities Inc was incorporated under the laws of the State of California in 1978. In 1995, the Company reincorporated in the State of Maryland. The Company is a Maryland corporation that has elected to be treated as a real estate investment trust for federal income tax purposes. The Company is engaged in the development, redevelopment, acquisition, ownership and operation of multifamily communities located in high barrier to entry markets of the United States. These barriers to entry generally include a difficult and lengthy entitlement process with local jurisdictions and dense urban or suburban areas where zoned and entitled land is in limited supply. The Company's markets are located in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the Northern and Southern California regions of the United States. At December 31, 2015, the Company owned or held a direct or indirect ownership interest in 259 operating apartment communities containing 75,584 apartment homes in 11 states and the District of Columbia. It owned or held a direct or indirect ownership interest in 26 communities under construction that are expected to contain an aggregate of 8,112 apartment homes when completed. The Company also owned or held a direct or indirect ownership interest in land or rights to land in which the Company expects to develop an additional 32 communities that, if developed as expected, will contain an estimated 9,634 apartment homes. The Company obtains ownership in an apartment community by developing a new community on vacant land or by acquiring an existing community. The Company's real estate investments consist of segments: Established Communities, Other Stabilized Communities and Development/Redevelopment Communities. Established Communities segments offers operating communities that were owned and has stabilized occupancy and operating expenses as of the beginning of the prior year such that year-over-year. Other Stabilized Communities segment includes all other operating communities that has stabilized occupancy and operating expenses during the current year, but that were not owned or had not achieved stabilization as of the beginning of the prior year such that year-over-year. Development/Redevelopment Communities segment consist of communities that are under construction, communities where substantial redevelopment is in progress or is planned to begin during the current year and communities under lease-up. The Company operates its apartment communities under three brands Avalon, AVA, and Eaves by Avalon. The Avalon brand offering, focuses on upscale apartment living and high end amenities and services in urban and suburban markets. Its AVA brand is designed for people who want to live in or near urban neighborhoods and in close proximity to public transportation, services, shopping and night-life. AVA apartments are generally smaller, many engineered for roommate living, and feature modern design and a technology focus. It's Eaves by Avalon brand is designed for renters who seek good quality apartment living, often in a suburban setting, with practical amenities and services at a more modest price point. The Company faces competition from other real estate investors, including insurance companies, pension and investment funds, partnerships and investment companies and other REITs, to acquire and develop apartment communities and acquire land for future development. The Company also competes against condominiums and single-family homes that are for sale or rent. The Company is subject to various federal, state and local environmental laws, regulations and ordinances and also could be liable to third parties resulting from environmental contamination or noncompliance at communities.