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"I'm not a lawyer, but I have to think that there are business/homeowners in this 'chaz' zone whose Constitutional rights are being denied by the non-enforcement of the law."

I'm no lawyer, but the occupiers' claim to have taken control over an area which includes private property, along with their reported efforts to control exit and entry into the area, could possibly be construed as some sort of violation of property rights, or perhaps even as a kind of illegal imprisonment.

Even if they aren't forcibly keeping homeowners in the area, there is kind of implied threat that they might choose to do so, which might fall under some sort of menacing statute.

My understanding, they were forcing home owners to pay taxes directly to them and not the city as well.

Impersonating a taxing authority?