The City used an Expropriation Decree, which is a type of eminent domain that allowed the government to acquire private lands for reconstruction. The government was able to occupy the land immediately. Upon taking possession it authorized upgrading and sold new housing to earthquake victims. The community participated in the entire process, and their attitudes changed from “hostility, uncertainty, incredulity, suspicion, and doubt to hope and confidence”.
Reference: Kreimer, Alcira and Edward Echeverria, Case Study: Housing Reconstruction in Mexico City, The World Bank.