"Sec. 3   RCW 64.34.050 and 1989 c 43 s 1-106 are each amended to read as follows:
     (1) Except as provided in RCW 64.34.440 and subsection (2) of this section, a zoning, subdivision, building code, or other real property law, ordinance, or regulation may not prohibit the condominium form of ownership or impose any requirement upon a condominium which it would not impose upon a physically identical development under a different form of ownership. Otherwise, no provision of this chapter invalidates or modifies any provision of any zoning, subdivision, building code, or other real property use law, ordinance, or regulation.
     (2)(a) The legislative authorities of counties subject to RCW 36.70A.215 and the cities within those counties may adopt laws or ordinances, subject to the limitations of this subsection, that restrict the number of conversion condominiums that are approved annually or within any other time period chosen by the legislative authority if that jurisdiction has documented that:
     (i) The rental vacancy rate within the jurisdiction is below five percent; and
     (ii) There has been a net loss in rental housing stock during the previous twelve-month period.
     (b) In placing limits on condominium conversions, counties and cities are subject to the following restrictions:
     (i) Counties and cities may only restrict condominium conversions that affect rental unit developments where at least fifty percent of the rental units at any time over the previous two-year period were offered at rent levels at or below sixty percent of the fair market rent for the county, as determined by the United States department of housing and urban development.
     (ii) Counties and cities placing restrictions on the number of conversion condominiums must allow the number of condominium conversions every year to be at least equal to the average annual number of condominium conversions over the jurisdiction's previous ten-year period.
     (iii) For county or city restrictions on condominium conversions without an expiration date or for those intended to last more than twelve months, within one month of the annual anniversary date of the implementation of such a restriction, a county or city must hold a public hearing and document that the conditions required in this subsection related to vacancy rates and the net loss of rental housing stock continue to exist. If these conditions no longer exist, any restrictions on the number of condominium conversions must be removed.
     (3) This section shall not prohibit a county legislative authority from requiring the review and approval of declarations and amendments thereto and termination agreements executed pursuant to RCW 64.34.268(2) by the county assessor solely for the purpose of allocating the assessed value and property taxes. The review by the assessor shall be done in a reasonable and timely manner."