If both your husband and your daughter received a 1099-S then they will both need to show it on their own tax return..
Since your husband did not live in it as his principal residence, then he cannot sell it on his 8949 carrying to the Schedule D as his principal residence excluding the gain on the sale. He will need to report it on his Form 8949 carrying to Sch D as the sale of a capital asset paying capital gains taxes on the gain.
