Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 98

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 98
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 our assets that falls within specified categories, the diversity of our capital stock ownership and the percentage of our earnings
that we distribute. Vinson & Elkins L.L.P. will not review our compliance with those tests on a continuing basis. Accordingly,
no assurance can be given that our actual results of operations for any particular taxable year will satisfy such requirements. Vinson &
Elkins L.L.P.’s opinion will not foreclose the possibility that a partnership or limited liability company in which we own an interest
could take an action which could cause us to fail a REIT qualification test, and that we would not become aware of such action in time
to dispose or our interest in the partnership or limited liability company or take other corrective action on a timely basis. In that
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