Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 325

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 325
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 for purposes of the 95% gross income test. Passive foreign exchange gain generally includes real estate
foreign exchange gain as described above, and also includes foreign currency gain attributable to any item of income or gain that is qualifying
income for purposes of the 95% gross income test and foreign currency gain attributable to the acquisition or ownership of (or becoming
or being the obligor under) obligations. These exclusions for real estate foreign exchange gain and passive foreign exchange gain do not
apply to any certain foreign currency gain derived from dealing, or engaging in substantial and regular trading, in securities. Such gain
is treated as nonqualifying income for purposes of both the 75% and 95% gross income tests.

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F ailure to Satisfy Gross Income Tests. If we fail to satisfy one or both of the gross income tests for any taxable year, we nevertheless
may qualify as a REIT for that year if we qualify for relief under certain provisions of the U.S. federal income tax laws. Those relief
provisions are available if:

| · | our failure to meet those tests is due to reasonable cause and not to willful neglect; and |

| · | following such failure for any taxable year, we file a schedule of the sources of our income in accordance with regulations prescribed by the Secretary of the U.S. Treasury. |

We cannot predict, however,
whether in all circumstances we would qualify for the relief provisions. In addition, as discussed above in “— Taxation of
Our Company,” even if the relief provisions apply, we would incur a 100% tax on the gross income attributable to the greater of
the amount by which we fail the 75% gross income test or the 95% gross income test multiplied, in either case, by a fraction intended
to reflect our profitability.

Asset Tests

To maintain our qualification
as a REIT, we also must satisfy the following asset tests at the end of each quarter of each taxable year. First, at least 75% of the
value of our total assets must consist of:

| · | cash or cash items, including certain receivables and money market funds and, in certain circumstances, foreign currencies; |

| · | government securities; |

| · | interests in real property, including leaseholds, options to acquire real property and leaseholds and personal property, to the extent such personal property is leased in connection with real property and rents attributable to such personal property are treated as “rent