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Hades did not live on Mount Olympus althoguh he was a major god who lived and roamed in the Underworld where he ruled. Also Hestia, oldest of the Olympians gave up her seat to the younger Dionyus.
First: Kronos's stomach when Kronos swallowed Hades when he was a baby. Then: Mount Olympus where he was raised. After: They kicked him out of Mount Olympus because he was not ment to be there. Last: The Underworld because he is the God of the Underworld.
Hades is the powerful god that lived in the underworld other than on Mount Olympus.
Because Hades does not reside on Olympus as the other Gods do, Hades dwells in the Underworld.
...well to the the Greeks they lived on mt.Olympus but not all gods and goddesses lived on mt. Olympus they lived in a city i don't know what its called but its a city my name is randy and i read about greek gods if you have any Quinton's about Poseidon ask me I'm a Poseidon expert