Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 321

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 321
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 direct mortgage of the real
property. IRS Revenue Procedure 2003-65 provides a safe harbor pursuant to which a mezzanine loan, if it meets each of the requirements
contained in the Revenue Procedure, will be treated by the IRS as a real estate asset for purposes of the REIT asset tests described below,
and interest derived from it will be treated as qualifying income for both the 75% and 95% gross income test. Although the Revenue Procedure
provides a safe harbor on which taxpayers may rely, it does not prescribe rules of substantive tax law. Moreover, we anticipate that
any mezzanine loans we may originate or acquire may not meet all of the requirements for reliance on this safe harbor. To the extent that
any mezzanine loans that we originate do not qualify for the safe harbor described above, the interest income from the loans will be qualifying
income for purposes of the 95% gross income test, but there is a risk that such interest income will not be qualifying income for purposes
of the 75% gross income test. We intend to invest in any mortgage debt and mezzanine loans in a manner that will enable us to continue
to satisfy the REIT gross income and asset tests.

Dividends.
Our share of any dividends received from any corporation (including any TRS, but excluding any REIT) in which we own an equity interest
will qualify for purposes of the 95% gross income test but not for purposes of the 75% gross income test. Our share of any dividends received
from any other REIT in which we own an equity interest, if any, will be qualifying income for purposes of both gross income tests.

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Fee Income. Fee income generally will not be qualifying income for purposes of both the 75% and 95% gross income tests. Any
fees earned by a TRS will not be included for purposes of the gross income tests, but will be subject to U.S. federal corporate income
tax, as described above. In addition, we will be subject to a 100% excise tax on any fees earned by a TRS for services provided to us
if such fees were pursuant to an agreement determined by the IRS to be not on an arm’s-length basis.

Foreclosure Property. We will be subject to tax at the maximum U.S. federal corporate income tax rate (currently 21%) on any income
from foreclosure property, which includes certain foreign currency gains and related