Efforts at improving earthquake recovery policies have been hampered by a lack of criteria and standards for evaluating and repairing damaged buildings. The Applied Technology Council has developed a performance-based methodology for the evaluation of earthquake-damaged concrete wall buildings and masonry wall buildings, recently published as FEMA 306/307/308. The methodology provides a way to quantify damage in terms of loss of seismic performance capability. It also provides guidelines for remedial measures to restore or improve seismic performance capability. In this methodology, the expected future seismic performance of a building is evaluated in its pre-event, damaged, and repaired conditions. Following the nonlinear static analysis procedure, displacement demands and capacities of the structure are used as indices of seismic performance. Identifying the governing mechanism of nonlinear deformation and the behavior mode of a structure and its components is shown to be a necessary first step towards evaluating expected seismic performance, interpreting indications of damage, and assessing their significance. The methodology provides a technical resource for understanding how buildings respond seismically on both global and component levels, and gives a basis for formulating post-earthquake policies.