The idea is that cities, especially in the US, typically have large numbers of free parking spaces that are often unused, or in any case arguably mis-priced. Cities usually also have parking management programs for their parking on public land, e.g. streets, that create zones and rules, and issue different types of permits for parking use (police/emergency, special event, Resident Parking Permit programs, commercial vehicle, etc).
What if cities extended their parking management programs to create a "Parking Dwelling Permit" (PDP) sub-program, in which certain parking locations might be marked as allowing or requiring such PDPs? PDPs might
be issued in the following way: