Definitions of terrace:

• noun:   a row of houses built in a similar style and having common dividing walls (or the street on which they face)

  Example: "Grosvenor Terrace"

• noun:   a level shelf of land interrupting a declivity (with steep slopes above and below)
• noun:   usually paved outdoor area adjoining a residence
• verb:   provide (a house) with a terrace
• verb:   make into terraces as for cultivation

  Example: "The Incas terraced their mountainous land"

• name:  A surname (very rare: popularity rank in the U.S.: #53855)