For the HOA (in California) to create new "rules" they must comply with the Davis-Sterling Act. this means that any punishments must involve "due process."

I believe every state should have a Property Management license and severely punish PM's who do not abide by the simple services we are supposed to provide.  

However where you really went off the rails is that silly statement of thinking to punish your perceived enemies by asking them to subsidize class D tenants on Class A property;  that's a terrible idea.

That half will demand at least civil punishment.

I've heard a lot of situations recently, where long-time hosts are being punished, even when guests lie about stuff, and get thrown off the platform.

Not as punishment, but as a safety precaution!

Don't punish the tenant for your oversight.

Sometimes you don't know who's at fault so you punish both of them, sometimes you give them what they ask for, sometimes you substitute what they ask for with something you'd rather give them, etc. :)

I'll continue to take the punishment if you feel you need to give it to me. 

To my understanding, the 203k loan has the benefit of minimizing upfront cost to acquire the property,  but you get punished by the premiums over the long term.