Property modifiers

Property modifiers in ETABS are used to model cracked behavior of concrete sections. They are only
applied to concrete members because of cracking.
Gross moment of inertia is bd^3/12 for a rectangular section, but when you make this member of
concrete, it will experience cracking when loaded after some time. This cracking will happen when
concrete reaches its tensile capacity which is about 7-10% of its compressive strength. Formula to
calculate cracking moments are given in ACI. For example, 3000psi will have only 300psi of tensile
strength. Actually the reinforcement starts its work when concrete cracks because of tension. After
cracking, concrete is no longer able to carry tension so steel starts taking the tension.
So now if concrete cracks after 300psi, the moment of inertia will be reduced because of cracking. If
moment of inertia is reduced, its stiffness is reduced, taking less moment, and its deflection increases
because of less stiffness.
This moment which the cracked beam is not taking anymore will be redistributed to other structural
members based on their stiffness.
If you read ACI chapter 10, there are many sets of modifiers used for different types of analysis.

-The use of these property modifiers coefficients should be for serviceability.

Deflections are affected, not the reinforcement. You can check that manually.
Members should be checked for strength checks also using cracked section properties.
-So just compare the two images, model having modifiers have less stiffness, so take less moment, that
moment is distributed to other stiff elements.
So the point is if you reduce the stiffness as in case of cracking, it will affect deflection as well as
moments. So the reinforcement values depend upon the moment. I agree with you that in beam design
formula, it depends upon b and d. Now this b and d are not with modifiers rather full values.
But the moment which has to be used in this formula is less because of less stiffness due to reduction in
modifiers.
Another thing. If you put the same modifiers for everything like walls, columns, beams, floor etc..so the
reduction will be uniform it will not affect the results. But if you make something stiffer and another less
stiffer so you basically are creating differences in stiffness so is the difference in the moment that will go
to these elements. Like in this example, I have applied

beams = 0.35,0.35,0.35 (j,m22,m33)

cols = 0.7,0.7 (m11,m22)
slab = 0.25,0.25,0.25 (m11,m12,m22)
walls = 0.7,0.7(m11,m22)

-To sum it here, design your members for augmented loads (with load factors) and check them for
serviceability with cracked section... Its a conservative way, super conservative to get good design. All
members are good, even if they crack and meet serviceability requirements (which may be different
upon their intended use).
Members should also be checked for strength using cracked sections. Its safer to apply to both
serviceability and strength conditions.
--