Yes, if your husband's name is on the title to the property as an co-owner, he will have to report his portion of the gain (in USD) on his US income tax return. Since the property was gifted to (and not inherited by) your husband as a child, he will use the original basis in the property to determine his gain. Just make sure to check whose names are on the title before the sale because if the father's name is still on it, your husband's proportional interest may be less than 1/3.
