The residency requirement is the law that compels refugees to remain in a prescribed county and that discourages them, by means of fines and incarceration, from visiting relatives in other counties.
WTF?!?! I can't really wrap my mind around this rule. What is its purpose? The only thing I can imagine is that Germany has decided it doesn't want high concentrations of a singular nationality in any specific area. Possibly this could prevent "non-Germans" from getting elected to Parliament much easier, or something similar. Personally, I love neighborhoods here in the US that are predominantly one nationality. It kind of gives an exotic taste from places that I may never be able to visit (say, Cambodia or Ethiopia or many others).
Where do most of Germany's refugees come from? Africa, I imagine? This sounds dangerously close to German supremacy, the very image that Germany has tried desperately to shed over the past 70 years.