Here's how an HOA *typically* works:
HOA's are formed of Homeowners who group together and determine that their area, or "development" will have a certain set of standards to be maintained by all who own homes within the confines. (boundaries) They vote in By-Laws, Covenants & Restrictions, and are usually run by a Board of Directors/Trustees, who are also voted in by the group.
When a home changes owners, part of the closing process of the sale is the new owners must be made aware of the CC&R's and they must sign that they agree to abide by those. They are required by law to have full disclosure of any fees (most HOA's have a yearly membership/maintenace fee) and a written copy of the By-Laws and CC&R's MUST be enclosed with their final mortgage papers.
Now, the problem here lies in the fact that this lady is a RENTER, not the Homeowner. (At least, that's the way I understood it from the story.) Technically (and I sincerly hope she gets an Attorney, because she could win this in court) the HOA cannot fine her diddly-squat. They can assess a fine/penalty against the HO, but the renter has no legal standing in the development.
I agree with the Sentator, HOA's have become a huge nusiance. A lot of first-time home buyers have no idea what to ask when they purchase new property, and get burned by these idjits. I know because of my experience with them, I will NEVER buy a house where there are CC&R's. I'm paying out the wazoo for MY house, and that gives me the right to do whatever I like on MY property.
Hope this helps a bit.