As per Text of H.R. 42 [109th]: Freedom to Display the American Flag Act of 2005. SEC. 3. RIGHT TO DISPLAY THE FLAG OF THE UNITED STATES.
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"A condominium association, cooperative association, or residential real estate management association
may not adopt or enforce any policy, or enter into any agreement, that would restrict or prevent a member of the association from displaying the flag of the United States on residential property within the association with respect to which such member has a separate ownership interest or a right to exclusive possession or use."
As per merriam-webster dictionary:
http://www.merriam-webster.com/dictionary/restrict
restrict: 1. to confine within bounds: restrain;
2. to place under restrictions as to use or distribution
The HOA telling him he has to take the flag down because the pole is too high, is in fact, a restriction on his flying the flag. The HOA are the one's violating the law and this mans rights. Hence, placing them in the wrong, not the Marine.