Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 344

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 344
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 the net income from the assets causing the failure during the
period in which we failed to satisfy the asset tests.

Currently, we believe that
our assets satisfy the foregoing asset test requirements. However, we will not obtain independent appraisals to support our conclusions
as to the value of our assets. Moreover, the values of some assets may not be susceptible to a precise determination. As a result, there
can be no assurance that the IRS will not contend that our ownership of assets violates one or more of the asset tests applicable to REITs.

Distribution Requirements

Each taxable year, in order
to maintain our qualification as a REIT, we must distribute dividends, other than capital gain dividends and deemed distributions of retained
capital gain, to our stockholders in an aggregate amount at least equal to:

| · | the sum of: |

| · | 90% of our “REIT taxable income,” computed without regard to the dividends paid deduction and our net capital gain or loss, and |

| · | 90% of our after-tax net income, if any, from foreclosure property; minus |

| · | the excess of the sum of certain items of non-cash income over 5% of our REIT taxable income computed without regard to the dividends paid deduction and our net capital gain. |

We must pay such distributions
in the taxable year to which they relate, or in the following taxable year if either we (1) declare the distribution before we timely
file our U.S. federal income tax return for the year, pay the distribution on or before the first regular dividend payment date after
such declaration and elect in our tax return to have a specified dollar amount of such distribution treated as if paid during the prior
year or (2) declare the distribution in October, November or December of the taxable year, payable to stockholders of record
on a specified day in any such month, and we actually pay the dividend before the end of January of the following year. The distributions
under clause (1) are taxable to the stockholders in the year in which paid, and the distributions in clause (2) are treated
as paid on December 31st of the prior taxable year to the extent of our earnings and profits. In both instances, these distributions
relate to our prior taxable year for purposes of the 90% distribution requirement.

Further, to the extent we
are not a “publicly offered REIT,” in order for our distributions to be counted as satisfying the annual distribution requirement