Charlene,
If your Association is incorporated as a nonprofit (most are, but you should check to be sure), the
PA Nonprofit Corporation Law of 1988 would apply (scroll down to SUBPART C, chapters 51-59).
Per
section § 5722 of that act, the Association may adopt qualifications for Directors. However, those qualifications must be contained within the Bylaws or the Bylaws must specify that the Board may adopt qualification. Here is the language from that law [emphasis added]:
§ 5722. Qualifications of directors.
(a) General rule.--Each director shall be a natural person of full age, except as provided in subsection (b), who, unless otherwise restricted in the bylaws, need not be a resident of this Commonwealth or a member of the corporation.
Except as otherwise provided in this section, the qualifications of directors may be prescribed in the bylaws. Therefore, to determine if the rule you cite is valid, you will need to read the Bylaws of your Association.