Dieckmeyer

The Redevelopment Agency of the City of Huntington Beach and the City of Huntington Beach (collectively the City unless otherwise stated) appeal from a judgment that directed issuance of a writ of mandate. The writ compelled the City to accept prepayment of Barbara Dieckmeyer’s promissory note and reconvey a deed of trust securing the note. The City argues it was entitled to impose additional conditions on repayment, to protect its right to an equity share and ensure compliance with recorded affordable housing restrictions. Alternatively, the City argues the existing deed of trust will survive prepayment and remain as security for these additional obligations.

We conclude partial performance of a secured obligation does not extinguish the hen. Since the deed of trust secures both the note and other promises, payment of the former will not affect the security for the latter. Dieckmeyer can prepay the loan without the City’s new conditions, but she is not entitled to reconveyance of the trust deed. We reverse the judgment to correct that error.

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In March 1994, Dieckmeyer purchased a condominium offered under an affordable housing program. Certain restrictions were…