As well, since the HOA pays for legal work, they can waste a lot of your time and money as well as fine you more.Binding arbitration should be a long term goal.Perhaps you should bring suit against the HOA for not following their rules for others, as well as having unclear rules in this and perhaps other matters.Good luck!

Does your contract say arbitration?

And if they refuse then bring in an arbitrator... if that fails then look for a lawyer.

I’m charging a few hundred dollars more a month as sort of a rental arbitration.

Might be able to get EMD back if you fight, I would encourage you to see is contract has arbitration, send letter to agents both sides and escrow or attorney.

If you are not in agreement with the loss settlement offer, you would hire an independent adjustor and arbitrate or an attorney to litigate.

If there are major differences they probably would like to move on without you as well..If you can't work it out with them, ask them if they would consider non-binding arbitration with an independent 3rd party. 

There's no negotiation, no arbitration hearing, he's gone, and a good attorney will get it done fairly quickly.First sit him down and tell him this..

From the info you provided, if this went to small claims court and was before a mediator/ arbitrator I'm assuming they would side with the tenants and find you to be unreasonable.  

You really need to locate a Real Estate Attorney well versed in HOA laws and operations, and you may also be able to demand Arbitration or Mediation, depending on your State Laws.