I heard a choshen mishpat shiur the rov held that the person who makes the driveway has a big halacha problem. since the street and sidewalk technically belong to the city by making an illegel driveway you are preventing all others who are entitled to park there from parking. In nyc there is also a law that you are not allowed to save parking spaces. This comes up after a snow, there are people who feel if I dug out the spot then its mine. NYC law says it’s not yours. This would apply to an ilegal drive too.
True story: I went to a friend to drop something off. As I was getting out of my car I saw a lady flag down a cop. she points to a car blocking her “driveway” ( it didn’t even look like a driveway). The cop wrote a ticket. I mentioned to my friend what I saw. The next day my friend tells me the rest of the story. That night he heard yelling and shouting. The owner of the car saw the ticket. He told the lady he was going to call 311. At the end they gave him money for the ticket.