Well, at least you now know what to do if YOU get a letter from your HOA telling you to do something: you can safely ignore it because they won't do squat.
If it's on your neighbor's property, and it's an obvious hazard, it's his responsibility to fix it, easement or not.
You could do nothing. But then if it falls and injures somebody or damages your tenant's property, you could find yourself a defendant in a lawsuit. So that's not a good option.
My suggestion is to offer to split the cost of tree removal with your neighbor. You could even try to split it three ways with the HOA, but I wouldn't bother; the HOA is clearly run by idiots who wouldn't know a decision if it bit them on the a**.
If the neighbor won't go along with splitting the cost, then your next step is to talk to a lawyer. I'm not sure if lawyers know how to cut down trees, but they certainly know how to bill. For this reason, it might be cheaper to pay the full cost of tree removal rather than engaging an attorney.
If you decide to go the "do-nothing" route, I would at least send your neighbor and the HOA letters advising them that the tree is an obvious hazard to life and limb, and that they'll be held responsible for any further damage it causes.
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