You can't live in a parking spot. When the city voted in a government that doesn't protect it, it's every man for himself.
SPD is pretty ripe with all sorts of issues (e.g., they thought it was a good idea to teargas capital hill for days on end). They've kind of created a hostile relationship with their community.
The problem is that many make a mess. Punish that. But there's nothing wrong with living in a public spot.
If someone started living in an RV directly in front of my house, I would be displeased.