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If a member fails to pay HOA dues, the board can - by following the disciplinary process outlined in the CC&R's - suspend the member's right to use common area amenities (or even membership voting rights.
However, the association cannot take action which would deny the use of the residence, such as cutting off essential utilities without first suing you for a judgment.
If the utility pays the water bill, and a member has failed to pay, then the HOA can sue and obtain a judgment. Once the judgment is in place, it is possible for the HOA to shut off the water until payment is made.
Also, the arbitrary enforcement of the rules is troublesome and generally illegal. Ru,es must be applied equally to everyone all the time. Thus, if this isn't happening, there is a legal problem for the board.
Honestly, the best action would be for the members of the community to file a lawsuit to remove the current board and start anew with an election of members who will follow and enforce the rules correctly. UNTIL a court order is entered stopping the activities of the current HOA, it's not likely going to get any better because no one is going to stop it.
You and the other like-minded members should consult a local attorney about addressing this problem.
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