The House You Live In is played in the G chord position, with a capo on fret two. Steel Rail Blues is in the C position, either in standard or first fret position. But I wouldn't lose hope for certain songs altogether. He only said that the key of C is hard to play on the twelve-string. If he got requests for a song usually done in C on the twelve, he could just use a standard six-string guitar.
Matthew
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