Sorry to use a term in Spanish but there is no correct English translation for this term.
A “Vecindad” would be a set of departments or family units connected by one or more “patios” or hallways.
These homes are small (at most two bedrooms) and rented, so once a month the owner comes to claim the rent.
They are usually economical since their main use is for lower middle class families, who cannot afford to own a house.
The “Vecindad” best known worldwide is the “Chavo del 8” and is what comes to mind to many Latin Americans when talking about “neighborhood”
It could be compared with the current apartment buildings, where one lives surrounded by neighbors but in the same lot, sharing common spaces to play or hang dry the clothes.
The interesting thing about this type of housing is not only the closest interaction between neighbors but there would also be an NPC who not only comes to collect the rent but is also the person with whom we can go if a neighbor is too annoying or our toilet is jam.
Not only to be able to divide a lot to build a duplex / triplex but also in several domestic units.