My understanding is one exclusion every two years.  And only for the primary residence.  

Did they sell the first home while she was alive and bought the second for their primary?  Did he sell it because of her death?  

It sounds like your best bet on the second home is the step-up as @jeffmcpa2010  suggested as long as the deceased was also an owner of that property.  Even in a non-community property state you can get the step up on half.