Well, notice he said townhouse, not house. Townhouses are (usualy) conduminiumized and known for their horrible homeowners associations. They can write just about anything into the documents that go along with the place. Another common example is satelite dishes, which are forbidden a large portion of the time... Without actual details, it's impossible to say what's really going on.

That being said, it's their house, and I agree it's outrageous...

Matthew