Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 72

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 72
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Program. The DST Program agreements limit our ability to encumber, lease or dispose of our beneficial interests. Such agreements could
affect our ability to turn our beneficial interests into cash and could affect cash available for distributions to our stockholders. The
DST Program agreements could also impair our ability to take actions that would otherwise be in the best interests of our stockholders
and, therefore, may have an adverse effect on our results of operations and NAV, relative to if the DST Program agreements did not exist.

Properties that are placed into the DST Program and later reacquired may be less liquid than other assets, which could impair our ability to utilize cash proceeds from sales of such properties for other purposes such as paying down debt, distributions, or additional investments.

DST Properties may later
be reacquired through exercise of the FMV Option granted to our Operating Partnership. In such cases, the investors who become limited
partners in the Operating Partnership (the “DST Investors”) will generally remain tied to the applicable DST Property in terms
of basis and built in gain. As a result, if the applicable DST Property is subsequently sold, unless we effectuate a like kind exchange
under Section 1031 of the Code, then tax will be triggered on the DST Investors’ built in gain. Although we are not contractually
obligated to do so, we may seek to execute a 1031 exchange in such situations rather than trigger gain. Any replacement property acquired
in connection with a 1031 exchange will similarly be tied to the DST Investors with similar considerations if such replacement property
ever is sold. As a result of these factors, placing properties into the DST Program may limit our ability to access liquidity from such
properties or replacement properties through sale without triggering taxes due to the built in gain tied to DST Investors. Such reduced
liquidity could impair our ability to utilize cash proceeds from sales for other purposes such as paying down debt, paying distributions,
funding redemptions or making additional investments.

RISKS RELATED TO OUR MANAGEMENT AND RELATIONSHIPS WITH OUR MANAGER

We are dependent on our Manager and its key personnel for our success.

We will be externally advised
by our Manager and, pursuant to the Management Agreement, our Manager will not be obligated to dedicate any specific personnel exclusively
to us, nor will its personnel be obligated to dedicate any specific portion of their time to the management of our business. As a result,
we cannot provide any assurances regarding the amount of time our Manager will dedicate to