The group Transportation Alternatives found that more than 75 percent of all permit holders are abusing the privilege. It also found that city workers are parking on sidewalks, in front of hydrants and anywhere else they can find room.

The group says parking permits have been abused for decades and many problems were found in neighborhoods near police precincts.

Researchers say the problem impacts local businesses and residents.

"We'd all like to be able commute to work and have free parking, but somehow it seems one segment has the dibs on it," said Jane McGroarty of the Brooklyn Heights Association.

"All it would take to solve this problem would be a single directive from the mayor, from the police commissioner, from a deputy police commissioner with traffic responsibility to say no tolerance, we are not going to allow placard abuse," said City Councilmember Alan Garson.

Responding to the report, Deputy Police Commissioner Paul Browne said: "The Police Department does not condone illegal parking. An official placard holder must adhere to its restrictions and is not exempted from parking tickets and other sanctions when he or she fails to do so."

The study estimates there are over 150,000 drivers in the city with various parking permits, and thousands more with forged ones.