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Thoughts on this, anyone?

Shrug... Nothing really special here. Read your deed when you buy a home. These folks were foolish to build this garage when the litigation was going on.

That being said, homeowners associations are home to some of the worst busybodies and tattletales you'll ever find. I practice RE law and my parents got into a dispute with their homeowner's association down in Florida over some illegally planted bushes. I had to write letters to all of the memebers of the board threatening to sue them personally if they didn't back off. Sure, we would have probably lost, but we could have made them spend tens of thousands of dollars defending themselves.

A friend of our just bought a 'McMansion' that is in a restrictive covenant plan. He was able to buy his almost $300,000 home (and by Pittsburgh real estate values, it is a McMansion) by working hard at his own business. A business that requires him to drive a van (with his business logo on it) home each night (expensive tools are kept in the van). His neighborhood busy bodies have construed his Chevy Astro van to be a 'service vehicle' and therefore can only be parked, in his own driveway, for the period of time the 'home is being serviced.' World War III has erupted in the Yuppiedom he lives in. He, at an obvious expense, has also hired a lawyer and threatened to go after his complaining neighbors via individual lawsuits as well as suing the homeowners association.