Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 319

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 319
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 in both gross income tests, but are subject
to a special tax at a rate of 100%. In addition, income and gain from certain “hedging transactions” that we enter into to
hedge indebtedness incurred, or to be incurred, to acquire or carry real estate assets, and that are clearly and timely identified as
such will be excluded from both the numerator and the denominator for purposes of the 75% and 95% gross income tests. Finally, certain
foreign currency gains will be excluded from gross income for purposes of one or both of the gross income tests. See “— Foreign
Currency Gain.” The following paragraphs discuss the specific application of the gross income tests to us.

Rents from Real Property. Rent that we receive, including as a result of our ownership of preferred or common equity interests
in a partnership that owns rental properties, from our real property will qualify as “rents from real property,” which is
qualifying income for purposes of the 75% and 95% gross income tests, only if the following conditions are met:

| · | First, the rent must not be based, in whole or in part, on the income or profits of any person, but may be based on a fixed percentage or percentages of receipts or sales. |

| · | Second, neither we nor a direct or indirect owner of 10% or more of our stock may own, actually or constructively, 10% or more of a tenant from whom we receive rent, other than a TRS. |

| · | Third, if the rent attributable to personal property leased in connection with a lease of real property is 15% or less of the total rent received under the lease, then the rent attributable to personal property will qualify as rents from real property. The allocation of rent between real and personal property is based on the relative fair market values of the real and personal property. However, if the 15% threshold is exceeded, the rent attributable to personal property will not qualify as rents from real property. |

| · | Fourth, we generally must not operate or manage our real property or furnish or render services to our tenants, other than through an “independent contractor” who is adequately compensated and from whom we do not derive revenue. However, we need not provide services through an “independent contractor,” but instead may provide services directly to our tenants, if the services are “usually or customarily rendered” in connection with the rental of space for occupancy only and are not considered to be provided