Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 99

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 99
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case, we may have to use one or more of the REIT savings provisions described below, which could require us to pay an excise or penalty
tax (which could be material) in order for us to maintain our REIT qualification.

If we fail to maintain our
REIT qualification in any taxable year, we will face significant tax consequences that would substantially reduce our cash available for
distribution to our stockholders for each of the years involved because:

| · | we would not be allowed a deduction for dividends paid to stockholders in computing our taxable income and would be subject to regular U.S. federal corporate income tax; |

| · | we could be subject to increased state and local taxes; and |

| · | unless we are entitled to relief under applicable statutory provisions, we could not elect to be taxed as a REIT for four taxable years following the year during which we were disqualified. |

Any such corporate tax liability
could be substantial and would reduce our cash available for, among other things, our operations and distributions to stockholders. In
addition, if we fail to maintain our qualification as a REIT, we will no longer be required to make distributions to our stockholders.
As a result of all these factors, our failure to maintain our qualification as a REIT could impair our ability to expand our business
and raise capital, and could materially and adversely affect the trading price of our common shares.

Qualification as a REIT involves
the application of highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations.
The determination of various factual matters and circumstances not entirely within our control may affect our ability to qualify as a
REIT. In order to maintain our qualification as a REIT, we must satisfy a number of requirements, including requirements regarding the
ownership of our common shares, requirements regarding the composition of our assets and requirements that certain percentages of our
gross income in any year must be derived from qualifying sources, such as “rents from real property.” Also, we must make distributions
to stockholders aggregating annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction
and excluding net capital gains. See “Material U.S. Federal Income Tax Considerations—REIT Qualification—Distribution
Requirements.” In addition, legislation, new regulations, administrative interpretations or court decisions may materially and adversely
affect our investors, our ability to qualify as a REIT for U.S. federal income tax purposes or the des