You heard correctly. As your family member, your wife enjoys freedom of movement under EU law, as laid down in directive 2004/38/EC. This means that for her first three months in the UK, there can be no requirements other than to be in possession of a valid passport and, if required, a visa. She also needs to be able to show that she's your wife, of course, and either that you are a "qualified person" or that you have been in the UK for less than three months (Article 6).
After three months, she is indeed required to be able to show that she is "accompanying or joining" you and that you are a qualified person (Article 7).
Nowhere in the directive is there any mention of accommodation.
Once she arrives, however, you are of course responsible for complying with housing laws. For example, if you live in a room where it is illegal for two people to live (this is just an example; I have no idea if such regulations exist in the UK), then you cannot rely on the directive to allow your wife to join you in that accommodation. In such a case, you would need to find a new place to live.