5. Upon submission of Application Fee(s) and Security Deposit, we will run a credit check on all adult household members.

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1 Thank you for your interest in Avalon Berkeley! Enclosed is information regarding the Avalon Berkeley Open Enrollment period for the affordable housing program: Information on the documentation requirements to verify household income An overview of the apartments, income limits and rents An Affordable Housing Lottery Questionnaire- Complete one per household An AvalonBay Application for Residency- Each adult household member (18 years +) must complete one. Make sure all forms are fully completed. Incomplete applications cannot be processed in the lottery! Select one of the following methods to submit your completed application packet: By mail: 715 Hearst Ave Suite 203, Berkeley, CA Drop off: At Above address from 8:30am to 6:30pm March 19 th 2014 to March 22 nd 2014 By All completed applications must be received by March 22, 2014, the last day of open enrollment. Applications received after the deadline will be added to the Avalon Berkeley waitlist by date and time of application. Next Steps in the Lottery Process: 1. All applications will be reviewed and marked as Accepted, Rejected, or Incomplete. All accepted applications will be placed in the Avalon Berkeley lottery pool. Rejected and incomplete applications will receive notification that they did not qualify for the lottery. 2. A lottery will be held on April 1, Applications will be randomly selected for each apartment size for all apartments (not all apartments will be available for immediate move-in; construction is continuing over the next few months and affordable apartments will be move-in ready throughout the spring). 3. Apartment offers will be sent to the randomly selected lottery winners via telephone, , and/or U.S. Mail. Applicants that are not selected will be added to a waitlist. All applicants will be informed via telephone, , and or US Mail of their status by April 15 th, All notified lottery winners are required to pay the following fees within 72 hours to reserve an apartment: $30 Application Fee for each adult household member (to run the credit check) $750 security deposit 5. Upon submission of Application Fee(s) and Security Deposit, we will run a credit check on all adult household members. 6. If the household passes the credit check, additional documentation will be requested to confirm household income. Please refer to the chart that explains the documentation you will need to submit; verifying your household income is required prior to final move-in approval. If you have any questions about the Avalon Berkeley Open Enrollment and lottery process, please call or Thank you for your interest in Avalon Berkeley! Avalon Berkeley 651 Addison Street Berkeley, CA

2 INCOME VERIFICATION DOCUMENTATION REQUIREMENTS Thank you for your interest in the affordable housing program at Avalon Berkeley! The chart below provides information on the required documentation to verify your household income if your household is selected in the lottery. This should NOT be submitted with your application. AvalonBay will request this information from lottery applicants once all credit checks pass. Bring Copies of your most recent TAX RETURNS For ALL Household Members. If any household members receive Earned Income- includes employment & wages of any kind (full-time, part-time, seasonal, self-employment, temporary employment, cash payment) from a current or anticipated job. Benefit Income- includes Social Security, SSI, Unemployment, Worker s Compensation, Welfare, or pension benefits. Other Income- including alimony, child support, foster care/adoption assistance, etc. Cash/help paying bills from family members If any household members have Saving or Money Market Account(s); Certificate of Deposit (CD) Checking Account(s) IRA, 401(k)s, Mutual Funds, trusts, and/or Annuities, Life Insurance Stocks or Bonds Real Estate Provide the following verification documents for each household member: Provide at least 2 most recent consecutive pay stubs; OR a pay-roll print out/summary, or a letter from your employer. For self employment: Provide full tax returns, Profit/Loss statement, OR a letter from an accountant. Provide an award letter or print out with the current benefit amount. Provide an award letter OR print-out, a copy of a custody arrangement or divorce decree. A notarized statement or affidavit from the family or friend stating the purpose, how much and how often money is provided to the household. Provide the following verification documents for each household member: The most recent account statement. Account statements for the last 6 months. Most recent account statements; Contact information for third party verification. Brokerage Statement; Contact information for third party verification. Documentation of the value, mortgage balance, and documentation income earned from renting the property, if applicable.

3 Affordable Housing is coming to BERKELEY (4) Studio, (7) One-bedroom, and (3) Two-bedroom Rentals Available at Avalon Berkeley. Apartment Features: Modern finishes, full equipped kitchen (with microwave, gas stoves, dishwasher, garbage disposal, refrigerator with ice-maker), washer/dryer in every home. Community Amenities: Fitness center, retail, rooftop deck, covered parking. Households must earn no more than the maximum income levels below: VERY LOW INCOME APARTMENTS: Monthly Rents* Studio: $746 1-Bedroom: $801 2-Bedroom: $954 Maximum Houshold Income (50% AMI) 1 person household: $31,250 2 person household: $35,700 3 person household: $40,150 4 person household: $44,600 5 person household: $48,200 Minimum income limits (2x monthly rent) also apply. LOW INCOME APARTMENTS: Monthly Rents* Studio: $1,304 to $1,385 1-Bedroom: $1,304 to $1,556 2-Bedroom: $1,726 Maximum Household Income (80% AMI) 400sqft- 599sqft: $51, sqft- 699sqft: $53, sqft- 849sqft: $57, sqft- 999sqft: $64, sqft- 1199sqft: $71,360 Minimum income limits (2x monthly rent) also apply. *Avalon Berkeley residents are responsible for gas, electric, phone, and cable utilities. Renters insurance required. Additional Monthly Fees apply for parking and pets. An increased security deposit will be required for households with pets. BMR rent subject to approval by the city of Berkeley. THE LOTTERY WILL BE HELD ON APRIL 1, Open enrollment period 3/1/2014 through 3/22/2014, Applications are available on Please call to request an application by mail or Construction is ongoing spring not all apartments will be available for immediate move-in *Rents subject to change at anytime without notice. Apartments contain FHA compliant features for persons with disabilities.

4 Avalon Berkeley Affordable Housing Questionnaire 1.) Name of Primary Applicant: 2.) Current Address: Street: City: State: Zip: 3.) Phone Numbers: Home: Cell: Work: 4.) 5.) How did you hear about us? 6.) What Program Are you interested in applying for? (circle all that apply): 50% (very low) or 80% (low) 7.) What size of apartment are you interested in? (circle all that apply): studio one two NOTE: Minimum Occupancy Standards Apply- there must be at least 1 person for each bedroom. 8.) What is your anticipated Move-In Date? 9.) Do you have any special housing needs? If so, please explain. 10.) Reason for relocating: 11.) Have you applied to any other AvalonBay communities? If Yes, where? 12.) How many persons will be occupying this apartment home? How many persons, including yourself, are 18 years of age or older? How many persons, including those over 18, will be full time students? 13.) Do you have any pets? If Yes, how many? What type of animal (s) & breed? 14.) What is your approximate combined gross annual household income?* $ 15.) Do you have a Housing Choice Voucher (formally Section 8)? (circle one) No Yes Housing Authority Name *Verification will be required prior to move-in Each occupant 18 years of age and older must complete an Application for Residency prior to Occupancy Please return the fully completed questionnaire with applications by March 22, 2014

5 Date: CALIFORNIA APPLICATION FOR RESIDENCY Apartment # Personal Information: Responsible Resident Guarantor [ ] Primary Applicant First Name Middle Initial Last Name Last Name Suffix (Jr., Sr., etc.) Social Security Number Former Last Name (maiden, married) Date of Birth No SSN, are you in the U.S. on a Visa? Yes No Visa Number Driver s License No. State DL/Visa Exp. Date Household Status (Optional)- Circle One: Married/Partner Roommates Married/Partner w/children Single Single w/children Occupant Information: (persons under 18 years of age) Name Date of Birth Name Date of Birth Name Date of Birth Name Date of Birth Residence Information: [ ] same as Primary Applicant [ ] same as Primary Applicant Current Street Address Suite or Apt. City State Zip Code Country Phone ( ) Address Name of Apartment Community or Mortgage Co. Type (circle one) Rent Own Other Dates of Residency: From To Contact Name Monthly Payment Employment Information/Additional Income: Contact Phone Reason For Moving *See eviction question on page#2. Current Employer(as of move-in date) Industry Street Address State City Position Monthly Income Work Phone Zip Code Name of Supervisor Revised 3/2012 Phone Dates of Employment: From To If there are other sources of income you would like us to consider, please list source and income amount. Sources of Additional Income Amount of Additional Annual Income ($) Note: After the application is processed, this entire page will be securely shredded except when prohibited by law.

6 Date: Apartment # Personal Information: Responsible Resident Guarantor [ ] Primary Applicant First Name Middle Initial Last Name Emergency Information: First Name (not an occupant) Middle Initial Last Name Current Street Address Suite or Apt. City State Zip Code Phone ( ) Type (circle one) Cell Home Work Allow Key Access Yes No Vehicle Information: Your Vehicle Make/Model Color Second Vehicle Make/Model Color [ ] same as primary applicant License Plate No. State License Plate No. State Other Vehicles: AvalonBay Communities cannot guarantee parking for all of the above listed vehicles. Pet Information: [ ] same as primary applicant Do You Own Any Pets? Yes No Do You Have Any Service Animals? Yes No If Yes, How Many? Type Breed Weight Name Eviction Information: *Have you ever been evicted or asked to move out? Yes No If Yes, Explain In connection with this Application for apartment home no. located at (the Apartment Home ), the undersigned ("you" or your ) hereby deposits with AvalonBay Communities, Inc. ("we", us, or our ) the sum of $ (the "Deposit"), plus the application fee specified on the receipt separately provided to you (the "Application Fee"). We will apply the Deposit in accordance with the provisions set forth below. The Application Fee is a generally non-refundable application fee for processing this Application and will not be refunded to you unless any of the costs itemized on the receipt are not actually incurred by us. You agree to pay the Application Fee in connection with our processing this Application whether or not an Apartment Home is actually available at this time. Upon receipt of this Application, the Deposit and the Application Fee, we will set aside and reserve the Apartment Home for you. By submitting this Application, you agree to enter into a lease ("Lease") for the Apartment Home under the terms specified in this Application. We may require you to sign the Lease concurrently with your submission of this Application. However, if we put you on a waiting list for an Apartment Home, you will not be obligated to sign a Lease until we advise you (in writing, in person or by telephone) that an Apart ment Home is available, and you accept the Apartment Home. You will have 24 hours after you are notified by us to accept or reject the Apartment Home, which you may do in writing, in person or by telephone. If you accept the Apartment Home, you will have 24 hours to pay all associated deposits and you must sign a lease within ten (10) days or your rights to lease the Apartment Home will terminate. If you do not timely notify us of your acceptance of the Apartment Home, we will thereafter have no obligation to lease the Apartment Home to you. If, for any reason, we decline this Application, then we will refund the Deposit to you in full. If we approve this Applicat ion, we will ask that you execute the Lease (if you have not already done so). Upon your execution of the Lease, we will apply a portion of the Deposit to the Security Deposit and the remainder of the Deposit, if any, to the Common Area Amenities [Charge/Rent] that is due upon the execution of the Lease. If, however, you decide prior to executing the Lease that, notwithstanding this Application, and our approval, you no longer wish to proceed with the Lease, you must so notify us in writing (the "Termination Notice"). To be effective, the Termination Notice must be delivered by you during regular business hours to one of our representatives at the leasing office where the Apartment Home is located. Concurrently with your delivery of the Termination Notice to us, in consideration for our having held the Apartment Home off the market and reserved the Apartment Home for you, you agree to pay to us a Reservation Fee in an amount equal to the product of (i) the number of days from the date of this Application until we received the Termination Notice; multiplied by (ii) the base rent that would have been payable by you under the Lease for the Apartment Home (calculated on a per diem basis). After our receipt of the Termination Notice, we will refund the Deposit to you in accordance with our cust omary practice, less the full amount of the Reservation Fee, unless you have previously paid the Reservation Fee to us, in which case no deductions from the Deposit will be made. Revised 3/2012

7 Date: Apartment # In all events, if you have not executed and returned the Lease to us within ten (10) days after this Application is signed by you, we will assume that you are not interested in proceeding, the Apartment Home will no longer be reserved for you, and we will refund the Deposit t o you, less the full amount of the Reservation Fee. By accepting the Deposit and the Application Fee from you, we are not obligated to approve this Application or rent the Apart ment Home to you. Our approval of this Application is contingent upon our receipt of a satisfactory report of your rental history, credit history and other information that we deem necessary. By signing this Application, you certify that all persons over eighteen years of age who will be occupying the Apartment Home have completed and provided to us a separate Application for Residency, and that each such occupant of the Apartment Home will sign the Lease at the time required by us. You authorize us, through our designated agent or employees, to obtain and verify information for the purpose of determining whether or not to lease the Apartment Home to you. You understand that should you enter into the Lease for the Apartment Home, we and our designated agents and employees will have a continuing right to review your credit information, rental application, payment history and occupancy history for account review purposes and for improving application methods. You may have additional rights under the credit reporting or consumer protection laws of California. For further information, you can contact the California Department of Consumer Affairs or the California State Attorney General s Office. By signing this Application, you certify that all information contained in this Application is true, correct and complete and you acknowledge and agree that rent for the Apartment Home may not include costs for utilities, including water and sewer, for which you will be responsible It is unlawful to discriminate against an applicant or tenant because of their race, color, national origin, religion, gender, familial status, disability, or any other basis that may be protected under applicable state or local law. Signature of Applicant Signature of Management / / Date / / Date FOR OFFICE USE ONLY: Approved/Declined By Approval/Declined Date Revised 3/2012

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