The purpose of the LDFA is to encourage local development to prevent conditions of unemployment and promote economic growth. The LDFA provides for the creation and implementation of development plans. The LDFA can buy and sell interests in real and personal property. It can also incur debt to further the goals and purposes of the LDFA.

Governed by Public Act 281 of 1986, an LDFA captures tax increment financing in an effort to develop areas with the highest potential for development. A tax increment financing plan and development plan are necessary for the LDFA to capture the taxes.

In 1991, Blackman Charter Township created the Local Development Finance Authority primarily for the purpose of funding the infrastructure needs of an industrial development for TAC Manufacturing. Today, this Authority has added another industrial resident, Kaneka Texas Corporation.