Rules on pricing condo units foreclosed by the Condo Association?

I am a new Board member in a Texas Condo Association. Over two years ago, the Association took the deed to one of the condo units for nonpayment of dues.

Now, the Board wants to list the condo unit for sale. The Condo Association Property Manager is saying that we cannot price the condo unit at market rate, but at a price equivalent to out-of-pocket expenses, ostensibly because it might appear the Association foreclosed in order to make a profit.

Is the Condo Association Property Manager correct in their judgement? Is the Condo Association limited in pricing, even after the duration of two years?