Sochi 2014 bid team has confirmed their plans to locate all Olympic athletes close to the venues. Here’s few quotes from the press release:

“75% of all athletes at the Sochi Games will be housed within 5 minutes of their competition and training venues, for the first time in Olympic Winter Game history.”

“Sochi 2014 promises a more manageable Olympic and Paralympic Winter Games, with all elements taking place in a mountain cluster and coastal ice cluster, only 40 minutes apart. While the functional compactness of the Sochi 2014 plan will provide maximum convenience for the Olympic Family, the media, sponsor guests and spectators, it will also greatly enhance the Games experience for the athletes, usually exiled to the farthest reaches of the Village and often forced to spend hours in transit each day.”

“Sochi’s Games plan will allow spectators to easily view multiple events in a single day, and give athletes the unique chance to attend events that they are not competing in.”