Thwarting terrorism with planning.

Apartment industry professionals know exactly what to do if an apartment springs a leak in a pipe or if a door has a broken lock. But would they know what to do if a terrorist attack wiped out power, communications systems and HVAC and forced residents to be quarantined inside the community?

It's a day that we all hope will never come. But it's also a day that property owners, managers and staff need to be prepared for. Eleven of the 19 September 11 hijackers were residents of apartment communities. The al Qaeda handbook specifically mentions apartments as ideal hiding places and potential targets because of their light security: A recent alert from the U.S. Department of Homeland Security (DHS) said there were uncorroborated threats against apartment buildings in southern California. For some, the day we all hope will never come may come sooner than we think.

September is National Preparedness Month (NPM). Sponsored by DHS and the American Red Cross, NPM is designed to highlight the importance of emergency preparedness and promote involvement by individual citizens and the private sector. Right now is an ideal time to become more aware of the specific threats the apartment industry, faces, to learn more about where the industry stands and to develop a proactive plan for emergency preparedness.

More Work to Do

A recent survey by the National Multi Housing Council (NMHC) indicated that property owners and managers have taken important steps to make their communities more secure, but there is still more work to be done. Survey findings, which included responses from industry professionals managing more than 1.2 million apartments, include:

* A large majority of apartment communities (78.7 percent) conduct criminal background checks on prospective residents.

* Almost all (96.6 percent) conduct criminal background checks on prospective employees.

* About 53 percent screen current or prospective residents against known terrorist lists.

* Security was either very or somewhat important to residents, according to 97.7 percent of survey respondents.

* 36 percent of respondents conduct security assessments in all of their communities, with regional managers being the most likely staff person to spearhead the project; 31.5 percent conduct them annually; 27.8 percent conduct them quarterly.

* 77.5 percent of respondents have implemented a crime prevention and resident safety awareness program.

* 81 percent said they have a disaster and emergency management plan in place.

The survey concluded, "While community safety and security are of paramount importance to respondents, there appear to be various areas that can benefit from more attention and/or advice and counsel to enhance various community safety and security features. Further study and communications are likely needed to narrow the gap between what is being done and what needs to be done."

Identifying Threats

Apartment buildings are known as soft targets because they are somewhat open to the public and they generally have little security beyond a front gate or doorman. Because of this, apartment industry professionals should be aware of some specific threats that the National Apartment Association (NAA) has received information about from DHS.

Vehicle-Borne Improvised Explosive Devices (VBIEDs). Otherwise known as truck or car bombs, VBIEDs pose a serious risk to apartment buildings due to the nature of the business. Frequent deliveries, large parking lots, undeground garages and various service calls are all part of daily life in apartment communities. Therefore, owners, management and staff should consistently be on the lookout for:

* Delivery or service personnel who appear nervous or act out of character.

* Delivery or service personnel who park illegally, too close to a building or who abandon their vehicle.

* Delivery or service personnel who are alone when a job normally requires more than one person.

* Overloaded or unevenly loaded vehicles.

* Smoke or strong chemical and fuel odors coming from a vehicle.

Information from DHS stresses that VBIEDs can be any type of vehicle and that terrorists have shown creativity in terms of their selection. Limousines were specifically mentioned due to their size, ability to fit in parking garages and leniency of security personnel if they suspect a VIP is on board.

HVAC Exploitation. Intelligence sources also have indicated that terrorists could target heating, ventilating and air conditioning systems of large buildings to disperse chemical or biological agents. Without carbon and HEPA filters in place, external air intake systems are extremely vulnerable to this type of attack. Some contaminants could include toxic gas, such as hydrogen cyanide or chlorine, or aerosolized toxins such as ricin or anthrax. A recent DHS alert outlined several protective measures:

* Have a plan in place to address a HVAC system attack.

* Consider making external air intake systems less accessible or secured with perimeter fencing.

* Know the building's HVAC system's vulnerabilities.

* Conduct periodic walk-through inspections for evidence of tampering.

* Be alert for suspicious packages, containers, liquids or powders found near air intake systems or in ductwork.

* Immediately report suspicious activity around HVAC systems or people in possession of HVAC system information or diagrams with no legitimate need for this information.

* Consult the system's specialist.

Stolen Uniforms, Vehicles and Identification. According to DHS, in the past terrorists have used stolen uniforms and identification to get closer to their targets without arousing suspicion. They cited a 2003 survey of select law enforcement agencies that revealed from February to May, "hundreds of official identification cards, badges, decals, uniforms and government license plates were reported stolen or lost. Additionally, a number of private companies have reported receiving suspicious inquiries about renting official delivery vehicles, and emergency service representatives have received unusual requests for detailed vehicle descriptions."

Property owners, managers and staff are urged to remain vigilant about double checking the identity of service personnel, vendors and visitors, but also about securing unused uniforms, vehicles, badges and identification cards. If a terrorist or criminal were to gain access to these items, they could have virtually unlimited access to a property and its residents.

Apartments as Staging Grounds. With so many of the September 11 hijackers living in apartments, everyone from property owners to maintenance personnel must be aware of who is renting their apartments and on the lookout for suspicious activity. (See sidebar, page 62.) Regional Management Inc. (RMI) of Maryland is on the vanguard of resident screening. Their citizenship screening policy requires U.S. citizens to show a birth certificate, passport or military ID and foreign nationals are required to have a valid visa, passport and I-94 (students require an I-20 or IAP-66).

"RMI's policy applies equally to citizens and non-citizens alike; no single group is profiled," said Connie Jacobs, a Paralegal at RMI who implemented the program. Jacobs added that the program was developed in November 2001 as a response to the terrorist attacks and that their prospective residents understand why they're doing it.

Lessons from TOPOFF 3

DHS conducted the third in a series of emergency operations simulation exercises called TOPOFF 3 or T-3 during the week of April 4. The private sector was encouraged to participate at the desktop level, and several representatives from the apartment industry took part in the exercise.

Participation was coordinated through the Real Estate Information Sharing and Analysis Center (ISAC). NAA also played a key role by coordinating activities and communications between the ISAC and local affiliates.

Barbara Vassallo, NAA Vice President of Government Affairs, said of the simulation, "It was a great opportunity for our members to see the type of issues that will crop up during a crisis and how NAA can help through our participation in the ISAC."

During the exercise, a chemical attack and explosion in Connecticut were simulated at the same time as a biological attack in New Jersey. A Virtual News Network was set up to provide "injects" of breaking news, and players were also relayed situation reports from DHS through the Real Estate ISAC but were not allowed to contact government players directly.

Fifty private sector companies participated in the exercise with representatives ranging from the president of a major real estate investment trust to building security staff. ISAC sector representatives were co-located to the National Infrastructure Coordination Center and provided with a phone and e-mail to communicate with their players and the opportunity to confer with DHS specialists. DHS looked to the ISAC representatives to provide "situational awareness" of how each sector was coping with the crisis.

ISAC Executive Director Roger Platt said the exercise helped participants by allowing them to learn from their mistakes in a low-stress environment and amend the scope and substance of their emergency response plans accordingly. In a memo to participants, Platt noted the "Operational Lessons Learned":

* Need for food, water and other shelter in-place supplies.

* Need for redundant communications systems between facilities.

* Need for plan to get employees to work and provide temporary housing in case mass transit and highway options are foreclosed.

* Need to integrate terrorist and natural disaster crisis response plans.

* Need for dialogue between real estate sector companies to validate planning and implementation.

* Need for crisis planning for facilities well outside zone of immediate impact (due to panic).

* Need for procedures and drills for quickly shutting down HVAC systems.

* Need for procedures for securing buildings in the event of full evacuation.

* Need to assume and plan for resident and even staff panic.

Mike Beirne, Senior Vice President, Kamson Corporation, saw the September 11 devastation first hand from Kamson's New Jersey headquarters.

"From a couple miles away I saw the trade center on my way to work; all I saw on the way home was rubble and smoke." Beirne was a "player" in the T-3 exercise and monitored the Virtual News Network and other communications from federal authorities and the ISAC. He came away from the exercise with a new appreciation for the issues.

"This was a great opportunity for private sector involvement," Beirne said. "If we are a part of the process, we can be a part of the solution. What I learned is that information is everything. There is a real opportunity for property managers to help in crisis situations simply by getting information to people. I'm going to make sure that every manager I have onsite is playing an active role assisting and organizing our residents by acting as a conduit for the information provided to them by authorities."

Platt agreed. "In emergencies, whether it's a natural disaster or a terrorist attack, residents will look to community managers for information. T-3 was designed to show the industry how that information will be delivered and iron out any problems in the communications."

Details on the T-3 exercise can be found in the View from National that was published in NAA affiliate publications in June and is available on the NAA Web site at www.naahq.org/units/view.htm.

Preparing for Disaster Today

To help prepare for an emergency situation, Bill Lawrence, Operations Manager for H.G. Fenton, a San Diego-based property management company with more than 2,000 residential units, worked closely with San Diego County emergency management officials to put together a blueprint for the apartment industry, "The Emergency Response Plan Model for Apartment Buildings." The plan includes guidelines, sample forms and procedures covering everything from fires to bomb threats to search and rescue.

The plan is available for download from the NAA Web site at www.naahq.org/govern_affairs/Issues/homelandsec/emergencyprep.

"Emergency officials and first responders can't do it all," Lawrence said. "When you're onsite, you are the real first responder whether you want to be or not. I designed this template to be a starting point for anyone in the industry to use as a guide in putting together their own emergency response procedures."

The apartment industry could be doing a lot more to prepare for disaster. But there seems to be a consensus that, with the exception of New York City, the industry has been hesitant to make any large capital investments in greater security and preparedness due to the fact that any one individual property has such a small chance of a terrorist incident. But the fact remains that all properties are subject to crime, earthquakes, fires, tornados, flooding, mudslides, etc.

The bottom line is that by having an emergency response set of procedures in place, apartment companies will be prepared on the day that preparation will make all the difference.

Spotting Suspicious Resident Activity

Beyond screening, examples of suspicious resident activity to be aware of include:

* Insistence on a certain apartment or location, i.e., ground floor, back of property.

* One individual renting multiple apartments.

* Rent being paid all in cash or by money order or front-end payment of entire lease.

* Rotating occupants with or without management's knowledge.

* Rent being paid by multiple people with funds drawn on multiple bank accounts.

* Utilities not established by the new resident.

* Frequent visitors at a unit.

* No one seen leaving the unit.

* Use of pay phones in the area.

* Taking multiple photographs of area or nearby landmarks.

While inside the unit for regularly scheduled preventive maintenance, smoke detector or lock check, or while performing a service request, look for openly apparent suspicious materials or evidence of unauthorized occupants, including:

* Chemicals or caustics

* Weapons or ammunition

* ID making materials

* Items hidden behind window drapes 

* Modifications to building interiors that could create hidden compartments

* Bomb-making materials, such as PVC or metal piping, nails, kitchen timers, gunpowder, fertilizer

* Suitcases or evidence of long-term overnight visitors

* Lack of furnishings as if staying a short time

Emergency Response Plan Model

"The Emergency Response Plan Model for Apartment Buildings," which includes guidelines, sample forms and procedures covering everything from fires to bomb threats to search and rescue, is available for download from the NAA Web site, www.naahq.org/govern_affairs/Issues/homelandsec/emergencyprep.

For updates on homeland security and terrorism threats, visit www.naahq.org/govern_affairs/Issues/homelandsec/.

NAA Joins Critical Preparedness Group

The NAA Executive Committee approved membership in the Real Estate Information Sharing and Analysis Center (REISAC) last month, marking a ground-breaking step forward in emergency preparedness for NAA members and affiliates.

The REISAC is a public-private partnership between real estate trade organizations and the federal Department of Homeland Security. Other members include the Building Owners and Manufacturers Association, the National Association of Realtors and the International Council of Shopping Centers.

The primary goal of the REISAC is to disseminate threat information from the public to the private sector. However, other stated goals include: making the national threat advisory system more meaningful and actionable; better assessment of real estate-related threats and vulnerabilities; and better coordination of response planning and the sharing of best practices. Another function is to collect threat and incident information from participants and report it to federal officials.

For more information about the REISAC, contact NAA Vice President of Government Affairs, Barbara Vassallo at 703/518-6141 Ext. 106 or visit the REISAC Web site, www.reisac.org.

Freeman Smith, NAA State and Local Policy Manager, can be reached at [e-mail] or 703/518-6141 Ext. 117.