I don't see how you can report somebody for "planning" to put up a fence. Why are you being so timid? I see nothing delicate or touchy about the situation. Walk over and ask him. Let him know it's against your deed restrictions and if reported, it would be a costly mistake.
I live in a patio villa, if my neighbor put up a small fence around his patio and didn't go past the back of our houses, I really wouldn't care.
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