The Lake Orion Downtown Development Authority (DDA) was created by the village council in 1985 to promote the objectives of Michigan Public Act 197 of 1975, which later became the DDA section of the Michigan Recodified Tax Increment Financing Act, Public Act 57 of 2018. The Village President appoints the members of the DDA board of directors with the approval of the village council and also serves on the board. The board comprises members with various backgrounds and interests in the district.
The DDA utilizes tax increment financing through the capture of growth in taxable value within the DDA district to fund its projects. The annual budget of the DDA is approved by the village council prior to final adoption by the DDA board. The DDA board employs an executive director to manage and oversee the operations of the authority.