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The HAZUS methodology has been widely used for estimating the potential losses of an existing building stock caused by earthquake ground shaking for the purpose of quantifying seismic risk in a region or an urban area. Often nonlinear pushover analysis of typical buildings is required for establishing building capacity and fragility curves. This paper presents a procedure for establishing the required fragility curves for various damage states, in particular for the more severe damage states, based on nonlinear pushover analysis results. A solution is proposed for overcoming the difficulty encountered when determining the median spectral displacements for the more severe damage states. An example is given to illustrate the entire process. The proposed procedure has been successfully applied by the authors in recent seismic loss estimate studies of modern cities with densely populated buildings in regions of moderate seismicity.