The City of Royal Oak Building Authority is incorporated under State Act 31, Public Acts 1948. The Articles of Incorporation were amended February 6, 1995. Its purpose is to acquire, furnish, equip, own, improve, enlarge, operate, and maintain building, automobile parking lots or structures, and recreational facilities. The Building Authority would generally lease back any of its improvements to the city.

The Building Authority is composed of five members, three of who are citizens appointed by the city commission for six-year terms, the city manager and the city finance director.

Members who serve three full consecutive terms may be reappointed at the discretion of  the city commission.