Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 325

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 325
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ock Residential (in the case of Bluerock Residential, as of the date of the Distribution) as to factual matters, and is conditioned
upon certain representations made by us as to factual matters, including representations regarding the nature of our and Bluerock Residential’s
assets and the conduct of our and Bluerock Residential’s business. Paul Hastings L.L.P’s opinion is not binding upon the IRS
or any court, and speaks as of the date issued. In addition, Paul Hastings L.L.P.’s opinion is based on U.S. federal income tax
law governing qualification as a REIT, which is subject to change either prospectively or retroactively.

Our qualification and taxation
as a REIT depends upon our ability to meet, on a continuing basis, through actual annual and quarterly operating results, certain qualification
tests set forth in the U.S. federal income tax laws. Those qualification tests involve the percentage of income that we earn from specified
sources, the percentage of our assets that fall within specified categories, the diversity of ownership of our stock and the percentage
of our earnings that we distribute. Paul Hastings L.L.P. will not review our compliance with those tests on a continuing basis. Accordingly,
no assurance can be given that our actual results of operations for any particular taxable year will satisfy such requirements. While
we intend to operate so that we will maintain our qualification as a REIT, given the highly complex nature of the rules governing
REITs, the ongoing importance of factual determinations and the possibility of future changes in our circumstances, no assurance can be
given by tax counsel or by us that we will qualify as a REIT for any particular year. Paul Hastings L.L.P.’s opinion will not foreclose
the possibility that we may have to use one or more of the REIT savings provisions described below, which could require us to pay an excise
or penalty tax (which could be material) in order for us to maintain our REIT qualification. For a discussion of the tax consequences
of our failure to qualify as a REIT, see “— Failure to Qualify.”

Taxation of REITs in General

If we maintain our qualification
as a REIT, we generally will not be subject to U.S. federal income tax on the taxable income that we distribute to our stockholders. The
benefit of that tax treatment is that it avoids the “double taxation,” or taxation at both the corporate and stockholder levels,
that generally results from owning stock in a corporation