OREGON - Metro's innovative Transit-Oriented Development program needs to better document how it selects and funds high-density projects along transit lines, in part to avoid looking too cozy with developers, a performance audit concludes.

The audit comes on the heels of the resignation last month of the program's manager and the merging of his staff with Metro's long-range planning unit. Auditor Suzanne Flynn said the report wasn't intended to be critical of former manager Phil Whitmore. The audit found no indication of questionable dealings, Flynn said.

Whitmore said the timing was coincidental, and he defended his record.

"There was no relationship between my leaving and the possibility the audit would say something negative," he said. "I felt like we did fine. I didn't think we needed to tighten procedures. We did a good job selecting projects, and stayed within the procedures established by the (Metro) Council."

The program provides incentives for developers who build mixed-use high-density projects on or near MAX train lines. Metro has bought land and resold it to developers at a lower cost, provided low-interest loans, bought easements and paid for building improvements.

It recently added another tool: energy tax credits.

Money for Transit-Oriented Development comes from federal transportation funding passed through TriMet to Metro. Project expenses were $3.7 million in 2006 and $2.8 million in 2007. Since the program began, 14 projects have been completed and 16 are in progress.

Advocates say such development can increase transit use, protecting the region's investment in MAX train lines or other high-capacity transit. Encouraging multistory housing and retail development on or near mass transit results in efficient use of land and reduces sprawl.