A funeral home per statute of many states in this country is where a body is prepared for burial or cremation. From what you have described, I view a memorial service being held at your community club house, not a funeral home.If the recorded covenants,conditions and restrictions for your planned unit development do not preclude what is going on that you are writing about, then such is allowed. If you want to received more guidance on the issue, I suggest that you consult with an attorney that practices law in the area of planned unit developments.