Constitutional amendment to authorize cities and villages to incur indebtedness for residential development projects and pledge taxes for such indebtedness and to change provisions relating to redevelopment projects

This constitutional amendment (LR 312CA) would allow Nebraska cities and villages to borrow money for residential development or redevelopment projects in designated blighted areas. It permits municipalities to issue bonds or loans without being restricted by existing charters and to pledge excess property taxes from the project area (above pre-development values) to repay the debt. The tax pledges would last up to 15 years for residential projects or 20 years for redevelopment (potentially extended under specific high-unemployment/poverty conditions). The amendment requires voter approval at the November 2026 general election and would change existing constitutional provisions governing such projects.