Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 342

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 342
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 will be treated as our assets and gross income for purposes of applying the various REIT qualification requirements.

We have control of our Operating
Partnership and intend to control any subsidiary partnerships and limited liability companies, and we intend to operate them in a manner
consistent with the requirements for our qualification as a REIT. We may from time to time be a limited partner or non-managing member
in some of our partnerships and limited liability companies. If a partnership or limited liability company in which we own an interest
takes or expects to take actions that could jeopardize our qualification as a REIT or require us to pay tax, we may be forced to dispose
of our interest in such entity. In addition, it is possible that a partnership or limited liability company could take an action which
could cause us to fail a gross income or asset test, and that we would not become aware of such action in time to dispose of our interest
in the partnership or limited liability company or take other corrective action on a timely basis. In that case, we could fail to qualify
as a REIT unless we were able to qualify for a statutory REIT “savings” provision, which could require us to pay a significant
penalty tax to maintain our REIT qualification.

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Taxable REIT Subsidiaries. A REIT may own up to 100% of the stock of one or more TRSs. A TRS is a fully taxable corporation that may earn
income that would not be qualifying income if earned directly by the parent REIT. The subsidiary and the REIT must jointly elect to
treat the subsidiary as a TRS. A corporation (other than a REIT) of which a TRS directly or indirectly owns more than 35% of the
voting power or value of the outstanding securities will automatically be treated as a TRS. We will not be treated as holding the
assets of a TRS or as receiving any income that the TRS earns. Rather, the stock issued by a TRS to us will be an asset in our
hands, and we will treat the distributions paid to us from such TRS, if any, as income to the extent of the TRS’s earnings and
profits. This treatment may affect our compliance with the gross income and asset tests. Because we will not include the assets and
income of TRSs in determining our compliance with the REIT requirements, we may use such entities to undertake activities