My HOA has banned backyard clothes lines, so I've installed some rods in my garage. I take the clothes out of the washer, put them on hangers, and leave them to dry for a day or so. I do put towels and sheets in the electric dryer though. Fortunately I have a small car so there is room for everything.
Some of my neighbors are trying to get the ban lifted due to the reasons above - it's better for the environment, saves money, etc.