Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 334

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 334
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 tax purposes is generally treated as a partnership for
U.S. federal income tax purposes. In the case of a REIT that is a partner in a partnership that has other partners, the REIT is treated
as owning its proportionate share of the assets of the partnership and as earning its allocable share of the gross income of the partnership
for purposes of the applicable REIT qualification tests. Our proportionate share for purposes of the 10% value test (see “—
Asset Tests”) is based on our proportionate interest in the equity interests and certain debt securities issued by the partnership.
For all of the other asset and income tests, our proportionate share is based on our proportionate interest in the capital interests in
the partnership. Our proportionate share of the assets, liabilities, and items of income of any partnership, joint venture, or limited
liability company that is treated as a partnership for U.S. federal income tax purposes in which we acquire an equity interest, directly
or indirectly, will be treated as our assets and gross income for purposes of applying the various REIT qualification requirements.

We have control of our Operating
Partnership and intend to control any subsidiary partnerships and limited liability companies, and we intend to operate them in a manner
consistent with the requirements for our qualification as a REIT. We may from time to time be a limited partner or non-managing member
in some of our partnerships and limited liability companies. If a partnership or limited liability company in which we own an interest
takes or expects to take actions that could jeopardize our qualification as a REIT or require us to pay tax, we may be forced to dispose
of our interest in such entity. In addition, it is possible that a partnership or limited liability company could take an action which
could cause us to fail a gross income or asset test, and that we would not become aware of such action in time to dispose of our interest
in the partnership or limited liability company or take other corrective action on a timely basis. In that case, we could fail to qualify
as a REIT unless we were able to qualify for a statutory REIT “savings” provision, which could require us to pay a significant
penalty tax to maintain our REIT qualification.

Taxable REIT Subsidiaries.
A REIT may own up to 100% of the stock of one or more TRSs. A TRS is a fully taxable corporation that may earn income that would not be
qualifying income