Does an HOA owe federal tax when selling a foreclosed unit?

[Ken P.]

A condo HOA where we have a number of units and where I sit on the board is being told by our accountant that we owe tax on the profit on the sale of a unit owned by the Association. The Association has owned it for a number of years after foreclosing on it during the global financial crisis for unpaid dues and fees. I've Googled and read many articles that say the HOA does not owe tax on the substantial capital gain that the HOA enjoyed when we sold, but our accountant says it's clear that we do. Proceeds from the sale were put into reserves and subsequently mostly spent on needed concrete parking lot replacement work, and we haven't budgeted for the tax payment we're being asked to pay. Can any CPA with the proper background (with the caveat of course that you're not giving legal advice) comment on this topic? Thanks in advance.