Clemenza's family would not need all that room or upkeep expense. Anything's possible. His wife might have died before him, etc. the timeline is so screwed up in GFII, it's nearly impossible to make any logical sense of it.
Yes but Michael said the house went to Clemenza. And as I recall in GFI Clemenza had kids cause he told Paulie to watch out for them when he was backing out of the driveway.