Your understanding is incorrect. This only applies to rent controlled, and rent stabilized apartments. Most NYC apartments are neither of these, and rent stabilized itself has ceased to be effective in many cases.
The scenario you're describing is possible, kind of, maybe. Usually rent controlled apartments also have pretty strict laws about subletting, to prevent this exact kind of thing (and this is all legislation that predates airbnb).
The scenario you're describing is possible, kind of, maybe. Usually rent controlled apartments also have pretty strict laws about subletting, to prevent this exact kind of thing (and this is all legislation that predates airbnb).