No decline there
Many years ago I lived in a neighborhood with an HOA. Same thing happened to a neighbor. Used to be that ALL the houses were beige with brown trim, yuck. A few folks had changed their colors and it was OK, perhaps there were new approved colors. Then my neighbor painted her house and was promptly told it was NOT an approved color. They made her repaint. At the next yearly meeting a friend convinced me that the two of us should run for the board... and we were elected.
We changed that rule. After my term was up I moved to where I am now, on acreage where the neighbors aren't too close and mind their own business.
Sounds like there are some issues with communication between the board and the management team and the residents. Sounds like you did what you needed to.
Worst case you might have to repaint...