Landlords liable for sidewalks mishaps.

Step on a crack and break your mother's back, but fall on a sidewalk in New York City and sue the building owner.

On June 27, to help balance the city's $43.7 million budget, the City Council unanimously passed legislation that shifted the liability for sidewalk injuries from the city to building owners. City officials estimate the bill will save the city more than $40 million a year in settlements and staffing.

New York spent $53 million on sidewalk tort claims last year. But building owners are already paying enough to balance the city's ailing budget, say some real estate professionals.

"We are going on the record against it, but if the city council and the mayor approve it will be a tough road to hoe," said Greg Carison, executive director of Federation of New York Housing Cooperatives and Condominiums. "It's getting tough on those who own buildings. Everything is going up and now the city has put another burden on owners. They are shifting their responsibility."

Exempted from the bill are owners of one-, two- and three family residences, because more than two-thirds of the approximately 3,000 sidewalk claims a year occur on buildings with four or more units.

In addition to already escalating insurance costs, a second bill p passed by the council would require building owners to c personal injury and property damage insurance for side walk injuries.

Both bills have to win Mayor Michael R. Bloomberg's approval, which is very likely. Carlson estimates the additional insurance may cost some landlords a 10% increase in premiums.

"Now you have to include in the evaluation of your property sidewalks that weren't even considered before," Carlson said.

Building owners may have to be a little more aware of the condition of their sidewalks, but the larger commercial and residential building owners may not be hit as hard by the insurance requirement.

"I think from the Real Estate Board's standpoint, our own carry liability insurance and already have some liability," said Marolyn Davenport, REBNY's senior vice president of management services and government affairs. "They already do maintain their sidewalks. Now it makes it doubly imp important to maintain them, but I think our owners have be responsible in doing that."

It's the smaller building owners that may feel the pinch at first.

"I think the smaller landlords with very little or no insurance may find a difference at first," said Ed Riguardi, managing director of the New York office of Jones Lang LaSalle. "I that's where the city has noticed most of their claims"

If landlords cannot pay, the city may reimburse injured parties up to $50,000 for medical expenses which it would the try to collect from the building owner.

The new laws becomes effective 60 days after Mayor Bloomberg signs the bills.