Well I don't believe that I said the houses were crafting by a master architect, but I know what you are driving at. But in Lothua magic users are well accepted, even if they do not invite them in. The number of magic users on the defense of the city is high, so it is not like the government is blind to the dealings of the underground movement. They just turn a blind eye to the activities, but take advantage of the fact of having a large number of magic users within their walls.

The number of magic users in the Lothua military is greater than that of any other kingdom, they did not get that way without knowing about all the work that the underground does. While Lothua could not openly support them, they do draw many of their recruits from them. The people by and large are accepting of the magic users within Lothua. The tolerance is much different from the outside, so the need to hide is not so present. They may all be refugees in a town, but that is not really a mystery to the general public. Its a sanctuary, not a hideout.