I got accepted as a sophomore transfer and looked on the GLS about website and it said that sophomore and seniors are required to be in residence at Washington Square in NYU. Does this mean that I am required to dorm if I attend? I already live in NYC and I was always planning on commuting and it would cost too much for me to attend if I am forced to dorm 
No. It just means you can’t study abroad/away during your sophomore and senior year. NYU never forces anyone to live in the residence halls.