They want to add engraved bricks with names of deceased and living member, and adding service medallions to the existing sign of the community club house
Real Estate Attorney
The board's powers over the common area's should be spelled out in your governing documents , it may be subject to a vote or the stipulation that the use does not interfere with other uses. The costs will also have to be addressed.
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HOAs are generally pretty powerful. Check the bylaws to confirm, but it's likely allowed if they think they are allowed to do it. Best of luck
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Insurance Law Lawyer
HOA's are like tiny little governments. Their power comes from the controlling docs; these go under a few names such as CC&R's, covenants, etc. There are some statutes in the Texas Property code that regulate HOA's, but probably nothing to regulate this specific thing. Get your hands on the docs and read thoroughly.