Blue Star/Gold Star Flag Act of 2011 - Prohibits a condominium association, cooperative association, or residential real estate management association from adopting or enforcing any policy, or entering into any agreement, that would restrict or prevent an association member from displaying a Service Flag on residential property within the association with respect to which such member has a separate ownership interest or a right to exclusive possession or use. (A Service Flag, also known as a "blue star banner," is an official banner authorized by the Department of Defense [DOD] for display by families who have members serving in the Armed Forces during any period of war or hostilities the United States may be engaged in for the duration of such hostilities.)
Prohibits anything in this Act from being considered to permit any display or use inconsistent with: (1) any DOD regulations regarding rules or customs pertaining to the proper display or use of the Service Flag; or (2) any reasonable restriction pertaining to the time, place, or manner of displaying the flag necessary to protect a substantial interest of the condominium, cooperative, or residential real estate management association.