Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 106

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 106
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 to engage in certain sales of our properties or may conduct such sales through a TRS, which would be subject to U.S.
federal corporate income tax.

The ability of our board of directors to revoke our REIT qualification without stockholder approval may cause adverse consequences to our stockholders.

Our charter provides that
our board of directors may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines
that it is no longer in our best interests to continue to qualify as a REIT. If we cease to qualify as a REIT, we would become subject
to U.S. federal income tax on our taxable income and would no longer be required to distribute most of our taxable income to our stockholders,
which may have adverse consequences on our total return to our stockholders.

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Legislative or other actions affecting REITs could have a negative effect on us or our investors.

There can be no assurance
that any future changes to the U.S. federal income tax laws or regulatory changes will not be proposed or enacted that could impact our
business and financial results. The REIT rules are constantly under review by persons involved in the legislative process and by
the IRS and the U.S. Treasury Department, which may result in revisions to regulations and interpretations in addition to statutory changes.
If enacted, certain of such changes could have an adverse impact on our business and financial results. Stockholders are urged to consult
their tax advisors regarding the effect of potential future changes to the U.S. federal income tax laws on an investment in our stock.

Distributions to tax-exempt investors may be classified as unrelated business taxable income and, in certain circumstances, tax-exempt investors would be required to pay tax on the unrelated business taxable income and to file income tax returns.

Neither ordinary nor capital
gain distributions with respect to our stock nor gain from the sale of stock should generally constitute unrelated business taxable income
to a tax-exempt investor. However, there are certain exceptions to this rule. In particular:

| · | under certain circumstances, part of the income and gain recognized by certain qualified employee pension trusts with respect to our stock may be treated as unrelated business taxable income if our stock is predominately held by qualified employee pension trusts, such that we are a “pension-held” REIT (which we do not expect to be the case); |

| · | part of the income and gain recognized by a tax-exempt investor with respect to our stock would constitute