It is unclear why it was not approved or denied. However, there is an issue that the officer sees. Did your husband enter the U.S. legally? Did he apply for a family or employment petition prior to April 30, 2001? Did you file a 485 Supplement? First, I would need to see if he even qualifies to adjust in the U.S. before looking further.
Brian D. Lerner
Attorney at Law
You should also be aware that in many cases where there is no reason to deny the application, the interviewing officer is relatively new to the job, and as such does not have authority to grant approval of adjustment cases at the interview, before the case is reviewed by a supervisor. There are still a lot of relatively new officers in Section 245 at the New York district office of USCIS, many of whom cannot grant cases without supervisory review, and who must use that boilerplate language to indicate that they could not grant your case on the day of interview - this does not necessarily imply that there is any reason to deny your case.
This is general information only. It is not intended as a substitute for legal advice, and does not create an attorney-client relationship.