The proposed constitutional amendment, set to be voted on during the general election in November 2026, seeks to amend Article VIII, section 12 of the Nebraska Constitution. The amendment would allow cities and villages in Nebraska to incur indebtedness for the purpose of developing, redeveloping, or improving residential projects, without being restricted by existing constitutional provisions or local charters. It would enable these municipalities to pledge taxes from the assessed valuation of properties in the designated project areas to pay off the incurred debt, with a maximum pledge period of thirty years for residential development and twenty years for redevelopment.

Additionally, the amendment modifies the existing provisions regarding the financing of redevelopment projects, allowing for greater flexibility in how cities and villages can manage their financial obligations. Once the debt and interest are fully paid, the properties would be taxed like any other property within the respective taxing jurisdictions. The proposed amendment will be presented to voters with a ballot language that clearly outlines its intent to authorize local governments to incur debt for residential development and adjust the rules surrounding redevelopment projects.