Your source heard the rumor that has been going around since the show started. The truth is this (we think): In the beginning, Eric stayed in George's guesthouse. Some sources say he was housesitting while George was wherever George was, others say he just needed a place to crash until he got his own place. Then Eric bought a house and 'moved out', but sources claim he uses his own house as a recording studio and rarely lives there, if you know what I mean. The thing with George is kept really hush-hush because of a) George's issues and b) the CBS people. This is why they were kind of on the outs for awhile last year during the 'George is fired' thing and George started borrowing Jorja's girlfriend to take to events, just to throw people off the fact that he's gay.

All of the above is purely speculation, of course. I'm just spreading rumors. But you can do with them whatever you will.