Stuck in an unsellable, unrentable [Condo] in [IA]

I purchased my condo in 2020 for 135k, The monthly dues were 206$

Fast forward to 2026, my HOA is in a lawsuit with the builder over quality of the build etc. (I do not have any complaints with my unit but others in the building do)

The dues have increased to 500$/month. My mortgage balance is 92k.

I am ready to sell my condo and look for a house, and I am finding that no banks will lend mortgages to anyone buying these condos due to the active lawsuit and lack of reserves.

I asked for permission to rent my unit since I clearly can’t sell it without taking a major loss. The by laws state no more than 10% can be rentals so I was denied.

What options do I have? Does anyone have a similar situation where they were able to bypass these rental bylaws due to having an unsellable unit?

I genuinely feel stuck and anxious, I don’t know what do to. Any advice is appreciated.