I do not like Letitia James, but the accusations are clearly false.
Lot of people absorb or divide up units to make them either more luxurious or cheap, and it has no effect on taxes at all, in any way. A smaller number of more luxurious units are taxed the exact same as a larger number of cheaper units. Taxes are based on sq footage, not number of units.
And the claim of "owner occupied" being false, is also untrue.
Her father is going to live there, so it is owner occupied. She does not have to live there as a co-buyer, in order for it to be owner occupied.