Although it may seem as though this area is connected to the Nightmare on Elm Street franchise from New Line Cinema, there's no connection as far as I'm aware.
Most of the houses currently on Elm Street were designed and constructed for Hulk in 2002. This small street is positioned just below Colonial Street and is frequently used for production work. It's rarely possible for the Studio Tour trams to enter the street as it as a very steep slope at the far end (which leads to the Court of Miracles) which the trams cannot negotiate. Between this access road and Elm Street itself is a parking lot for production vehicles, which trams have used in the past to make a u turn.
The interiors of four of the houses can be used as practical sets. The houses have been constructed with steel beams so that all of the interior walls are not load-bearing and can be removed and positioned as required by the set designers.
However, the original houses on Elm Street (then known as Industrial Street) and moved from their previous location near New York Street) were part of a massive set built for To Kill a Mockingbird. A whole street of real residential properties were bought by Universal in 1961 from the developers of the Dodgers Stadium (opened in 1962) which was being built in Chaves Ravine. Universal bought them from the developers for $1 each after the residents moved out.
The only original house from To Kill A Mockingbird is the first one on Elm Street, which featured as the Boo Radley house. This same house now features in CBS's Ghost Whisperer. Ironically, it's the only house featured in the movie that was built at Universal - Henry Bumstead designed the house - all the others in the neighbourhood were from the Chaves Ravine site. It was substantially altered for Hulk in 2002 - the exterior received a new porch, rail and paintjob and the interior floor and walls were replaced.
Overall, the Hulk construction crew worked for 7 months on site to create the new Elm Street. The house at the end of the street was constructed in 2007 for the Will Smith superhero drama Hancock and is a fully practical modern house..