Lawsuit over flag

Since when did HOA by-laws trump state law? The state law says "anyone can display a flag in a "respectful manner" as long as it is removable" so how does the HOA get away with being able to file suit? I don't
understand this. What really makes me mad about this the fact that they are more worried about supposedly lowering their property values than showing their patriotism.

To understand what I am talking about follow the shortcut to: http://www.local6.com/news/16399678/detail.html

Show your national pride and fly the flag!!!!