Following the 1986 earthquake in San Salvador, local planning authorities proposed an ambitious reconstruction plan, including a new satellite city, downtown densification, and mass reconstruction using private sector contractors. Despite their theoretical benefits, these schemes provided housing too expensive for the earthquake victims. In contrast, the nongovernmental organization (NGO) experiences, in particular that of the Cooperative Housing Foundation of El Salvador, suggest that the traditional individual progressive housing built by informal sector contractors was at once affordable and acceptable to the target families. © American Planning Association Chicago, IL.