There is a row of modern houses on Pater-Roth-Strasse and from inside the memorial, you can see these houses (and back yards) from where the bunker is. The stone memorial site wall separates the houses from the memorial. The streets are named after clergymen who were prisoners in Dachau between 1933-45.
I do not know the answer to this question. I have never been inside one of the houses and never met anyone who lives there.
I am also confused by the close proximity of houses and apartments to memorial sites in general, not only Dachau. The first time I visited Birkenau, it was the same thing. Houses right next to the former camp with inhabitants tending to laundry on clotheslines, music blaring from an open window, cars and bicycles. Each former camp and town seems to have its own relationship to this.
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