He can make it clear that you'll not be paying, but rather will be suing the HOA over the unreasonableness of the fine amount in comparison to the violation and the poorly written HOA Rules that could be interpreted multiple ways.

My agent seems to want me to just go with it but I don't think I'm being unreasonable. 

If they are on sec 8 I think you may be able to reach out to their case rep and let them know they are being unreasonable

This is really an unreasonable argument, in my view.

I have one now where the terms of the proposed agreement (seller's attorney drafted it) were considered unreasonable to the neighbors.

Sounds like their ask is unreasonably large and also not supported by anything.

For example, landlords may not locate families with children in any single portion of a complex, place an unreasonable restriction on the total number of persons who may reside in a dwelling, or limit their access to recreational services provided to other tenants.

That doesn't sound unreasonable for plans & permits, but what does the scope of the interior design work include?   

This felt very unreasonable at the moment withe able to remedy a solution. 

Appraisals aren't foolproof, but maybe it can help ground their unreasonable expectations.