ANSWERS: 2
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I would personally fight it, because chances are, you would not have bought the home, if you knew you could not rent or lease it in the future if you wished. Wether or not this is legal, I would ask an attorney that is familiar with Homeowners Associations. Good luck!
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If you were to buy a home under these by-laws you wouldn't have much of a case; you would be contractually agreeing to the limitations on your property. You should check your policy to see whether the by-laws passed by the homeowners association apply retroactively to those already owning property in the development. If they do, you're probably out of luck since you agreed to those limitations by contract.
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