Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 320

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 320
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 derives substantially all of its income from the real property securing the debt from leasing substantially all of its interest in the property, and only to the extent that the amounts received by the debtor would be qualifying “rents from real property” if received directly by a REIT. |

If a loan contains a provision
that entitles a REIT to a percentage of the borrower’s gain upon the sale of the real property securing the loan or a percentage
of the appreciation in the property’s value as of a specific date, income attributable to that loan provision will be treated as
gain from the sale of the property securing the loan, which generally is qualifying income for purposes of both gross income tests.

We may originate or invest
in mortgage debt and/or mezzanine loans. Interest on debt secured by a mortgage on real property or on interests in real property generally
is qualifying income for purposes of the 75% gross income test. Other than to the extent described below, if a loan is secured by real
property and other property and the highest principal amount of a loan outstanding during a taxable year exceeds the fair market value
of the real property securing the loan as of the date the REIT agreed to originate or acquire the loan (or, if there has been a “significant
modification” to the loan since its origination or acquisition by the REIT, then as of the date of that “significant modification”),
a portion of the interest income from such loan will not be qualifying income for purposes of the 75% gross income test, but will be qualifying
income for purposes of the 95% gross income test. The portion of the interest income that will not be qualifying income for purposes of
the 75% gross income test will be equal to the interest income attributable to the portion of the principal amount of the loan that is
not secured by real property, that is, the amount by which the loan exceeds the value of the real estate that is security for the loan.
However, in the case of a loan that is secured by both real property and personal property, if the fair market value of such personal
property does not exceed 15% of the total fair market value of all property securing the loan, then the personal property securing the
loan will be treated as real property for purposes of determining the interest on such loan is qualifying income for purposes of the 75%
gross income test.

Mezzanine loans are loans
secured by equity interests in an entity that directly or indirectly owns real property, rather than by a