Pyxis said it perfectly. Chickens have been village and city dwellers ever since there have been villages and cities. But proper management is essential when the birds cannot free range. Drainage, ventilation, stocking levels and maintenance are all important to keep odor and flies at a minimum.
Your neighbor does need to respect your rights by respecting the ordinance restrictions. If roosters are not allowed, then the rooster has to go. That's sometimes tough, and I know this from experience, when you start growing out chicks some of them are bound to be roosters. I like to raise my roosters just big enough to eat before they go away, other than those that are kept for breeders, which wear collars to help suppress their volume. The tough thing is that they often begin to crow before they are big enough to eat.
It's unfortunate that your house is at the rear lot line and that his coop is also at his rear lot line. Proximity makes it tough. Maybe you could help him move his coop a little forward, away from the lot line.
I'd start with a friendly chat.