Moderating neighbours is different from moderating strangers. Everyone lives near everyone else, a quarrel over a hedge continues in real life, and people hold strong views about parking, noise and who looks after the green. A moderator needs rules, patience and a thick skin, and the site should make the job lighter.
Start by sharing the load. A single volunteer moderator burns out within months. Aim for a small team of three or four from different streets, with a rule that nobody moderates a dispute they are part of. Give them access to the report queue in BuddyNext and agree on how quickly they reply.
Write the code of conduct in everyday words. Say that members must use their real names, must keep to local topics, must not post about a neighbour by name in anger, and must take disagreements to private messages or to a moderator. Short rules that people can remember are applied more fairly than long ones.
Plan for the awkward cases. Decide in advance what you do about a post that names a person, a request for help that might be a scam, and a member who is rude but not breaking a rule. Having an agreed answer takes the heat out of the moment, and the team can act together.
Keep a light touch on everything else. Most posts need no action. Welcome new members, thank people who help, and let ordinary chatter flow. The moderators who are known for kindness are the ones whose rare firm decisions are accepted without argument.