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MISSOULA- The North Missoula Community Development Corporation (NMCDC) on Missoula's northside needed a major rescue and the Missoula City Council threw out a life preserver Monday night.

In a 9-2 (one abstained) majority vote, councilors decided to forgive NMCDC's loan with the city up to $242,995.

The hour-long discussion Monday night generated some criticism. Some people said this was just a "bail out." But several councilors said what this is really about is the city's mission to continue to provide more affordable low-income housing. They said NMCDC was a cause worth saving.

Councilman Bob Jaffe said that in the corporation's condition the city would never see all $400,000 back from its loan. This was a way for the city to try to salvage half of that.

NMCDC is required to pay $14,500 when it signs the city's Loan Amendment Agreement. Under the contract, it will pay an additional $20,688 when it sells each of its remaining eight housing units.