Nope, no one seems to be able to give a definitive answer. I've contacted lawyers and my local government representatives but either no answer or at best acknowledge how vague the law is written. I recently found this article written by a NYC lawyer which offers the clearest explanation thus far: https://www.nolo.com/legal-encyclopedia/overview-airbnb-law-new-york-city.html
I've copy and pasted the highlights below:
"..the New York State Multiple Dwelling Law (MDL) does not prohibit short-term rentals, whether hosted or not, in "private dwellings"— one-and two-family homes... However, all such rentals could violate various other laws.
Hosts who engage in legal rentals in New York City may be required to obtain a special license or permit to operate a business in the City.
In addition, New York State and New York City each impose various taxes on hotels. These include a New York City hotel room occupancy tax, New York State sales tax, New York City sales tax, and the New York State hotel unit fee daily tax. Short-term rentals through Airbnb or other rental platforms may be subject to some or all of these taxes. Airbnb and other rental platforms do not collect or remit such taxes for hosts in New York City, thus they must do so themselves."
If anyone is able to speak directly to a lawyer and get clear answers for 2-family owner occupied homes in NYC, please do share!!!