1)Don't know 2) No

H1B could be renewed for up to 3 years. However it's up to employer, not employee to decide the length.

Is your hubby's school aponsoring his GC application? If so, ask why HR wants to do more paper work as it's unlikely you'll get GC approved within one year and HR has to do H1B renew on yearly base instead of renew for 3 years.

If the school is not sponsoring your hubby's GC application, I guess HR just doesn't see the position is required for more than one year and uses your GC application as excuse. Hope it's not the case.

Gook luck.