There is no indication that this apartment is rent controlled. In fact, according to the article, this woman moved into the apartment in 1984, which means that the apartment can't be rent controlled (in NYC, rent control only applies when an occupant has lived continuously in the apartment since 1970 or 1971).
It was defacto rent controlled by her action of withholding rent for defects and non-maintenance. Had this not been the case, the LL would have been increasing the rent but likely could not because of her action.
Yes but you can pass on a rent-controlled apartment to someone else (family, friend, or person who wants to pay you a bunch to get a rent-controlled apartment) and fulfill that requirement.