Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 101

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 101
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 which Bluerock Residential failed to so qualify.

If certain of our subsidiaries, including our Operating Partnership, fail to qualify as partnerships or disregarded entities for U.S. federal income tax purposes, we would cease to qualify as a REIT and suffer other material adverse consequences.

We intend that our Operating
Partnership will be treated as a partnership for U.S. federal income tax purposes, and that our other subsidiaries (other than any TRSs)
will each be treated as a partnership or disregarded entity for U.S. federal income tax purposes and, therefore, will not be subject to
U.S. federal income tax on its income. Instead, each of its partners or its member, as applicable, which may include us, will be allocated,
and may be required to pay tax with respect to, such partner’s or member’s share of its income. We cannot assure you that
the IRS will not challenge the status of any subsidiary partnership or limited liability company in which we own an interest as a disregarded
entity or partnership for U.S. federal income tax purposes, or that a court would not sustain such a challenge. If the IRS were successful
in treating any subsidiary partnership or limited liability company as an entity taxable as a corporation for U.S. federal income tax
purposes, we could fail to meet the gross income tests and certain of the asset tests applicable to REITs and, accordingly, we would likely
cease to qualify as a REIT. Also, the failure of any subsidiary partnerships or limited liability company to qualify as a disregarded
entity or partnership for applicable income tax purposes could cause it to become subject to federal and state corporate income tax, which
would reduce significantly the amount of cash available for debt service and for distribution to its partners or members, including us.

Distribution requirements imposed by law limit our flexibility.

To maintain our qualification
as a REIT for U.S. federal income tax purposes, we generally will be required to distribute to our stockholders at least 90% of our REIT
taxable income, determined without regard to the dividends paid deduction and excluding net capital gains, each year. We also will be
subject to tax at regular corporate income tax rates to the extent that we distribute less than 100% of our taxable income (including
net capital gains) each year.

In addition, we will be subject
to a 4% nondeductible excise tax to the extent that we fail to distribute during any calendar year at least the sum of 85