Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 25

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 25
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such as cash flows from financing activities, which may include borrowings and net proceeds from shares sold in this offering or our
common stock offering, proceeds from the issuance of additional shares pursuant to any future common stock distribution reinvestment
plan, cash resulting from a waiver or deferral of fees or expense reimbursements otherwise payable to the Manager or its affiliates,
cash resulting from the Manager or its affiliates paying certain of our expenses, proceeds from the sales of assets, and from our cash
balances. There is no limit on distributions that may be made from these sources; however, our Manager and its affiliates are under no
obligation to defer or waive fees in order to support our distributions.

REIT Status

As long as we maintain our
qualification as a REIT, we generally will not be subject to U.S. federal income or excise tax on income that we currently distribute
to our stockholders. Under the Code, a REIT is subject to numerous organizational and operational requirements, including a requirement
that it annually distribute at least 90% of its REIT taxable income (determined without regard to the deduction for dividends paid and
excluding net capital gain) to its stockholders. If we fail to maintain our qualification as a REIT in any year, our income will be subject
to U.S. federal income tax at regular corporate rates, regardless of our distributions to stockholders, and we may be precluded from
qualifying for treatment as a REIT for the four-year period immediately following the taxable year in which such failure occurs. In addition,
under applicable Treasury Regulations, if Bluerock Residential failed to qualify as a REIT during certain periods prior to the Distribution,
unless Bluerock Residential’s failure were subject to relief under U.S. federal income tax laws, we would be prevented from electing
to qualify as a REIT prior to the fifth calendar year following the year in which Bluerock Residential failed to so qualify. Even if
we qualify for treatment as a REIT, we may still be subject to state and local taxes on our income and property and to U.S. federal income
and excise taxes on our undistributed income. Moreover, any taxable REIT subsidiaries (“TRSs”) of ours generally will be
subject to U.S. federal income taxation and to various other taxes.

Restriction on Ownership and Transfer

Our charter contains restrictions
on ownership of our stock that generally prevent any one person or entity from owning more than 9.8% in value of the outstanding