Mother's hiding from Nazis, according to Hitler, in adjoining houses (7)

I believe the answer is:

terrace

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'houses' is the definition.
(I've seen this before)

I don't understand how the rest of the clue works.

(Other definitions for terrace that I've seen before include "Bank - houses in a row" , "Retrace (anag.)" , "Urban housing" , "Group of non-detached houses" , "street" .)

I've seen this clue in The Independent.

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