It would be perfectly legal, unless there are specific restrictions upon HOAs to prevent it. "Enforcible", "practical" and "good for business" are completely different concepts, however.
For those of you who do not know, this is how HOAs generally work. There are exceptions, but this is the general gist:
You buy a house in a development with a HOA. As part of the deed/title, there is a covenant. It says, to wit: I, the owner, agree to abide by the rules, present and future, of the HOA, to pay my dues and to pay any fines levied against me by the HOA, and if I fail to do this, a lein may be placed against my house that must be paid off before I sell or transfer the house to an heir.
This covenant is 100% legally binding. There are other ways of doing this (some with more and some with less teeth), but this is the most common one around here.
Now, what this means is that you have signed yourself up for obedience to whatever good stuff and whatever bad stuff the HOA comes up with. Usually this is lawn care stuff, external appearance stuff, restrictions on parking, etc. Often, the HOAs never even levy the fines that they threaten, because the HOA is run by people in the neighborhood, and no one wants to really torque off the people living next door. However, there have been HOAs that have regulated the flying of the flag, the placement of signs, interior colors of houses, and all sorts of stupid things. And just becuase the HOA is laid back when you buy the house does not mean that the Lawn Care Nazis won't win the next election.
What happens is the HOA finds a violator (they can see a violation, or someone dimes you out), and they levy a fine. You then tell them to pound sand. This goes on for months, or years. Then you try to sell your house, and discover that you have several thousand dollars worth of accumulated fines and penalties placed in a lien upon your property.
You now have to pay the lein, retain the services of a lawyer and go to court or, usually, both (since the covenant is pretty straight forward and the plaintiff usually doesn't have much of a leg to stand on).
The HOA can get away with the nonsense because it is a civil penalty, and it is something to which you, yourself, opened yourself up. The facts that the HOA was sane when you joined, or you didn't really understand the covenant, or your realtor or the slick talking developer didn't explain it to you don't really matter. You agreed to it, you signed your liberty away.
I know how bad things can be with HOAs because I work as a cop, and in my one of my old assignments (out of the Hood and up in God's Country where people have jobs and pay taxes) one of the HOAs had just been taken over by the Lawn Care Nazis and I got several calls a week from the little old biddy in charge, demanding that I go and tell someone to cut their lawn, take down a fence, remove a legally parked car, etc etc etc. I, of course, did no such thing, but I did make sure that the scofflaw in question was aware that the HOA was about to unleash the rapid weasels of lawyerdom upon them.
Most of the homeoners were like "oh, no, they can't do that. This is my house. What can they do? No, I don't know anything about a covenant. I'm pretty sure they can't do anything." OK. Well, I just wanted to let you know.
I forget how big the one lein was, but I recall it being in "nice used car" territory, and the homeowner was extraordinarily POed. Hey, I warned him, at least twice.
I firmly agree that HOAs can be good or bad, but I will never, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever live where one exists with an essentially blank check to do whatever they want, which is the way most are set up around here. You want to be able to limit the height of my grass or color of my outbuildings? We can talk. You want cart blanche to promulgate whatever rules and regs you want, with a covenant on my deed? No. Period. Full stop. Nein. Nyet. Non. No.
Mike