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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 VEVdC0hr3Jkh5iqP+3OslLoxdi7KDd7nErKuXWROechYWbyoeYspGq/Yqok8jNqs
 vCmzFCe/ng+twLJ/NHNPFw==

<SEC-DOCUMENT>0001179110-05-000951.txt : 20050111
<SEC-HEADER>0001179110-05-000951.hdr.sgml : 20050111
<ACCEPTANCE-DATETIME>20050111155231
ACCESSION NUMBER:		0001179110-05-000951
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050110
FILED AS OF DATE:		20050111
DATE AS OF CHANGE:		20050111

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AFFORDABLE RESIDENTIAL COMMUNITIES INC
		CENTRAL INDEX KEY:			0001265131
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				841477939
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	MAIL ADDRESS:	
		STREET 1:		600 GRANT STREET SUITE 900
		CITY:			DENVER
		STATE:			CO
		ZIP:			80203

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			LEE THOMAS H ADVISORS LLC
		CENTRAL INDEX KEY:			0001260943
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31987
		FILM NUMBER:		05523526

	BUSINESS ADDRESS:	
		STREET 1:		THOMAS H LEE CO
		STREET 2:		75 STATE STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02109
		BUSINESS PHONE:		6172271050
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-01-10</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0001265131</issuerCik>
        <issuerName>AFFORDABLE RESIDENTIAL COMMUNITIES INC</issuerName>
        <issuerTradingSymbol>ARC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001260943</rptOwnerCik>
            <rptOwnerName>LEE THOMAS H ADVISORS LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THOMAS H. LEE PARTNERS, LP</rptOwnerStreet1>
            <rptOwnerStreet2>100 FEDERAL STREET, 35TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>BOSTON</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>02110</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2005-01-10</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>8078225</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.00</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">On January 10, 2005, Thomas H. Lee Equity Fund IV, L.P. (&quot;Equity&quot;), Thomas H. Lee Foreign Fund IV, L.P. (&quot;Foreign&quot;), and Thomas H. Lee Foreign Fund IV-B, L.P. (&quot;Foreign B&quot;, and together with Equity and Foreign, the &quot;Funds&quot;) issued a pro rata distribution of, in the aggregate, 8,078,225 shares of common stock of the Issuer to their respective general and limited partners for no additional consideration.  The reporting person is the general partner of Thomas H. Lee Partners, L.P., which is the manager of THL Equity Advisors IV, LLC, which, in turn, is the general partner of each of the Funds.</footnote>
        <footnote id="F2">Not Applicable.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/Scott A. Schoen</signatureName>
        <signatureDate>2005-01-11</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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