Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 109

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 109
---
 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% of our ordinary
income for that calendar year, 95% of our capital gain net income for the calendar year, and any amount of that income that was not distributed
in prior years.

We intend to make distributions
to our stockholders to comply with the distribution requirements of the Code as well as to reduce our exposure to U.S. federal income
taxes and the nondeductible excise tax. Differences in timing between the receipt of income and the payment of expenses to arrive at
taxable income, along with the effect of required debt amortization payments, could require us to borrow funds to meet the distribution
requirements that are necessary to achieve the tax benefits