Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 53

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 53
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;     |

| · | buy out interests                                                                   
 of any co-venturers or other partners in any joint venture in which we are a party; |

| · | create working           
 capital reserves; and/or |

| · | make repairs,                                                                                               
 maintenance, tenant improvements or other capital improvements or expenditures to our remaining properties. |

Our ability to sell our properties
may also be limited by our need to avoid a 100% penalty tax that is imposed on gain recognized by a REIT from the sale of property characterized
as held for sale to customers in the ordinary course of business. In order to ensure that we avoid such characterization, we may be required
to hold our properties for the production of rental income for a minimum period of time, generally two years, and comply with certain
other requirements in the Internal Revenue Code of 1986, as amended (the “Code”). As such, we could be restricted from selling
a property at an opportune time to maximize proceeds.

Representations and warranties made by us in connection with sales of our properties may subject us to liability that could result in losses and could harm our operating results and, therefore, distributions we make to our stockholders.

When we sell a property,
we may be required to make representations and warranties regarding the property and other customary items. In the event of a breach
of such representations or warranties, the purchaser of the property may have claims for damages against us, rights to indemnification
from us or otherwise have remedies against us. In any such case, we may incur liabilities that could result in losses and could harm
our operating results and, therefore distributions we make to our stockholders.

Our investments could be adversely affected if a member of our Bluerock operating partner network performs poorly at one or more of our projects, which could adversely affect returns to our stockholders.

In general, we expect to
rely on members of our operating partner network for the day-to-day management and development of our real estate investments. Members
of our network are not fiduciaries to us, and generally will have limited capital invested in a project, if any. One or more members
of our network may perform poorly in managing our project investments for a variety of reasons, including failure to properly adhere
to budgets or properly implement the property business plan. A member of our network may also underperform for strategic reasons related
to projects or assets that the partner is involved in with a Bluerock affiliate but not our company. If a member of our network does