In most HOAs, the Board of Directors is given very broad powers to adopt rules for the protection of the property and the residents. Unless your HOA's CC&Rs are very unusual, the Board probably has the power to adopt rules restricting or prohibiting short term rentals, even when the owner or a long term tenant is also occupying the unit.
The HOA must enforce the rules equally against everyone. It must follow the rules and procedures, itself. It sounds like it might be, if you were given a hearing.
The HOA can impose fines, make the fines a lien on your unit, conduct a foreclosure sale of your unit, and evict you, if you do not comply with properly adopted and enforced rules. The HOA can include its legal fees in the lien amount. The legal fees will almost always be greater than the fines and greater than what you earn from your AirBnB income.
If other owners want to earn money via AirBnB and HomeAway, you should get together to persuade your HOA Board to amend the rules to allow short term rentals, maybe with reasonable restrictions to satisfy concerns of your neighbors, or elect Board members who agree with you.
Good luck.
Dana
Answered on Aug 02nd, 2017 at 4:41 PM