Can neighborhood shutdown my AirBNB?

[James Rodgers]

My current objective is the "house hack." I've been hoping for a 4-plex. However, I see an interesting opportunity in an A neighborhood in Birmingham, AL, Crestwood North. Most of these homes have been flipped, and it is that cute neighborhood your wife would love to live in. Well, there's a beautiful 5B 2BA two story HUD home there with 2800 sqft not including half finished basement unit and back studio+carport unit (which actually used to be a carriage house-SUCH a cool property; historic credit or something, beautiful 1900 house). For the purpose of us moving in, I would probably not address the basement and back studio, as theyre basically efficiency units that wouldn't pull MUCH income and need A LOT of work compared to the house.. I would 203k that guy, just the main 2800 sqft of the 2-story house. It's got 5 beds, with some more rooms that could become beds. It has a gorgeous upstairs living room and balcony, but no kitchen upstairs, just a bath. It even has a side entrance that leads directly upstairs.

I'm thinking... those 3 upstairs beds are perfect for AirBNB. If I was visiting Bham, I would enjoy staying in the area. 

I had a local investor friend tell me that the 501c3 who regulates the neighborhood would definitely frown on renting it out, I'd be the a**hole of the neighborhood, and they'd probably shut me down.

Is that possible? Can a neighborhood committee dictate what I do with the bedrooms in my own house? I would think no, but want some input before I structure a deal around it...

Thanks BPers!