Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 70

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 70
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, which means that the Master Tenant under the Master Lease bears the risk that the underlying cash flow from a DST Property may be less than the Master Lease payments. As a result, if a DST Property experiences negative performance, the applicable Master Tenant could demand funding pursuant to the demand note if the net operating cash flow is insufficient to pay the rent required under the Master Lease (subject to limited deferral rights) or to satisfy its other obligations under the Master Lease, which could affect cash available for distributions to our stockholders and could have an adverse effect on our results of operations.For additional information, see “Management’s Discussion and Analysis of Financial Conditions
and Results of Operations—Liquidity and Capital Resources.”

The Operating Partnership’s private placements of beneficial interests in specific Delaware statutory trusts under our DST Program could subject us to liabilities from litigation or otherwise.

We, through the Operating Partnership, have commenced a program to raise capital in private placements exempt from registration under Section 506(c) of
the Securities Act through the sale of beneficial interests in specific Delaware statutory trusts, or DSTs, holding real properties, which
may include properties currently indirectly owned by the Operating Partnership.

These interests may serve
as replacement properties for investors seeking to complete like-kind exchange transactions under Section 1031 of the Code. Properties
in which underlying interests are sold to investors pursuant to such private placements will be leased-back by the Operating Partnership
or a wholly owned subsidiary thereof, as applicable, and fully guaranteed by the Operating Partnership, although there can be no assurance
that the Operating Partnership can or will fulfill these guarantee obligations. Additionally, the Operating Partnership will be given
the FMV Option with respect to each DST in the DST Program, giving it the right, but not the obligation, to acquire the interests in the
DST from the investors at a later time in exchange for OP Units. Investors who acquired interests pursuant to such private placements
may have been seeking certain tax benefits that depend on the interpretation of, and compliance with, federal and state income tax laws
and regulations. As the general partner of the Operating Partnership, we may become subject to liability, from litigation or otherwise,
as a result of such transactions, including in the event an investor fails to qualify for any desired tax benefits.

The Operating Partnership’s private placements of beneficial interests in specific Delaware statutory trusts under our DST Program will not shield us from risks related to the performance of the real properties held through such structures.

Pursuant to the DST Program,
the Operating Partnership intends to place certain of its existing real