(a) At least ten days before adopting, amending or repealing any rule, the executive board shall give all unit owners notice of (1) The executive board’s intention to adopt, amend or repeal a rule and shall include with such notice the text of the proposed rule or amendment, or the text of the rule proposed to be repealed; and (2) the date on which the executive board will act on the proposed rule, amendment or repeal after considering comments from unit owners.

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(b) Following adoption, amendment or repeal of a rule, the association shall give all unit owners notice of its action and include with such notice a copy of any new or amended rule.

(c) Subject to the provisions of the declaration, an association may adopt rules to establish and enforce construction and design criteria and aesthetic standards. If an association adopts such rules, the association shall adopt procedures for enforcement of those rules and for approval of construction applications, including a reasonable time within which the association shall act after an application is submitted and the consequences of its failure to act.

(d) A rule regulating display of the flag of the United States shall be consistent with federal law. In addition, the association may not prohibit display, on a unit or on a limited common element adjoining a unit, of the flag of this state, or signs regarding candidates for public or association office or ballot questions, but the association may adopt rules governing the time, place, size, number and manner of those displays.

(e) Unit owners may peacefully assemble on the common elements to consider matters related to the common interest community, but the association may adopt rules governing the time, place and manner of those assemblies.

(f) An association may adopt rules that affect the use of or behavior in units that may be used for residential purposes, only to:

(1) Implement a provision of the declaration;

(2) Regulate any behavior in or occupancy of a unit which violates the declaration or adversely affects the use and enjoyment of other units or the common elements by other unit owners; or

(3) Restrict the leasing of residential units to the extent those rules are reasonably designed to meet underwriting requirements of institutional lenders that regularly make loans secured by first mortgages on units in common interest communities or regularly purchase those mortgages, provided no such restriction shall be enforceable unless notice thereof is recorded on the land records of each town in which any part of the common interest community is located. Such notice shall be indexed by the town clerk in the grantor index of such land records in the name of the association.

(g) In the case of a common interest community that is not a condominium or a cooperative, an association may not adopt or enforce any rules that would have the effect of prohibiting any unit owner from installing a solar power generating system on the roof of such owner’s unit, provided such roof is not shared with any other unit owner. An association may adopt rules governing (1) the size and manner of affixing, installing or removing a solar power generating system; (2) the unit owner’s responsibilities for periodic upkeep and maintenance of such solar power generating system; and (3) a prohibition on any unit owner installing a solar power generating system upon any common elements of the association.

(h) An association’s internal business operating procedures need not be adopted as rules.

(i) Each rule of the association shall be reasonable.