Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 71

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 71
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 such private placements
may have been seeking certain tax benefits that depend on the interpretation of, and compliance with, federal and state income tax laws
and regulations. As the general partner of the Operating Partnership, we may become subject to liability, from litigation or otherwise,
as a result of such transactions, including in the event an investor fails to qualify for any desired tax benefits.

The Operating Partnership’s private placements of beneficial interests in specific Delaware statutory trusts under our DST Program will not shield us from risks related to the performance of the real properties held through such structures.

Pursuant to the DST Program,
the Operating Partnership intends to place certain of its existing real properties and/or acquire new properties to place into specific
DSTs and then sell interests, via its TRS, in such trusts to third party investors. We will hold long-term leasehold interests in the
property pursuant to master leases that are fully guaranteed by our Operating Partnership, while the third-party investors indirectly
hold some or all of the interests in the real estate. There can be no assurance that the Operating Partnership can or will fulfill these
guarantee obligations. Although we will hold the FMV Option to reacquire the real estate through a purchase of interests in the DST, the
purchase price will be based on the then current fair market value of the third-party investor’s interest in the real estate, which
will be greatly impacted by the rental terms fixed by the long-term master lease. Under the lease we are responsible for subleasing the
property to occupying customers until the earlier of the expiration of the master lease or our exercise of the FMV Option, which means
that we bear the risk that the underlying cash flow from the property and all capital expenditures may be less than the master lease payments
at such time. Therefore, even though we will no longer own the underlying real estate, because of the fixed terms of the long-term master
lease guaranteed by our Operating Partnership, negative performance by the underlying properties could affect cash available for distributions
to our stockholders and will likely have an adverse effect on our results of operations and NAV.

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We may own beneficial interests in DSTs owning real property that will be subject to the agreements under our DST Program, which may have an adverse effect on our results of operations, relative to if the DST Program agreements did not exist.

In connection with our DST
Program, we may own beneficial interests in DSTs owning real property that are subject to the terms of the agreements governing our DST