Did they describe the improvements that were done in that section?

So I would suggest working on increasing your income, credit score, decreasing debt, increasing industry experience, etc. so that you improve your chances of getting approved by an underwriter as you work towards your goal of obtaining 20% down. 

If the new apartments have more amenities at a lower price than you, then you may need to either lower your rents or improve your property to be competitive.

So what we've decided to do to reduce the bleed is to find a short-term tenant to rent to, and then put the house back on the market after things improve (will it be in a month?

CC&R's and rules do state clearly board needs to inspect and accept any application for ANY improvements. 

Your customers need to be constantly educated about the many advantages of doing business with you, trained to use your products more effectively, and taught how to make never-ending improvement in their lives."

You have made improvements so go for the top of the market rents. 

They are not likely to negotiate on hard fees, like association dues and lawyer fees, but if you present yourself as someone who just wants to improve the property and the community (try not to come off as an investor or flipper) they have the power to waive older fees, and/or set up a payment plan for the fees if that helps you.

Having said that, improvements will only go so far to bring in more rent than what your market bears, so if the numbers look better to sell it because you've created a knockout home, why not? 

Then look for houses that can be bought at a steep discount and improved to be cash flowing rentals.