yes., the rule in tirumala is from the vaikhanasa agama (the holy script that prescribes the conduct of puja in the temple).
according to the agama, since the hill is considered sacred, only the people serving the lord are allowed to stay in the hills. others have to move down to the plains.
this agama was taken into consideration when the 1932 TTD establishment act was passed. No changes has been made to this in the subsequent acts.
Mr. Augustine - let us show some mutual respect. i consider vatican, jerusalem to be holy because of the power of prayer in those places over centuries. i shall not violate any rules of worship in those places. is it too much to expect the same from other religions towards a site considered so holy for the hindus?