Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 72

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 72
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 utilize cash proceeds from sales of such properties for other purposes such as paying down debt, distributions, or additional investments.

DST Properties may later
be reacquired through exercise of the FMV Option granted to our Operating Partnership. In such cases, the investors who become limited
partners in the Operating Partnership (the “DST Investors”) will generally remain tied to the applicable DST Property in terms
of basis and built in gain. As a result, if the applicable DST Property is subsequently sold, unless we effectuate a like kind exchange
under Section 1031 of the Code, then tax will be triggered on the DST Investors’ built in gain. Although we are not contractually
obligated to do so, we may seek to execute a 1031 exchange in such situations rather than trigger gain. Any replacement property acquired
in connection with a 1031 exchange will similarly be tied to the DST Investors with similar considerations if such replacement property
ever is sold. As a result of these factors, placing properties into the DST Program may limit our ability to access liquidity from such
properties or replacement properties through sale without triggering taxes due to the built in gain tied to DST Investors. Such reduced
liquidity could impair our ability to utilize cash proceeds from sales for other purposes such as paying down debt, paying distributions,
funding redemptions or making additional investments.

RISKS RELATED TO OUR MANAGEMENT AND RELATIONSHIPS WITH OUR MANAGER

We are dependent on our Manager and its key personnel for our success.

We will be externally advised
by our Manager and, pursuant to the Management Agreement, our Manager will not be obligated to dedicate any specific personnel exclusively
to us, nor will its personnel be obligated to dedicate any specific portion of their time to the management of our business. As a result,
we cannot provide any assurances regarding the amount of time our Manager will dedicate to the management of our business. Moreover, each
of our officers will also be an employee of our Manager or one of its affiliates, and will have significant responsibilities for other
investment vehicles currently managed by Bluerock affiliates, and may not always be able to devote sufficient time to the management of
our business. Consequently, we may not receive the level of support and assistance that we otherwise might receive if we were internally
managed.

In addition, we offer no assurance
that our Manager will remain our manager or that we will continue to have access to our Manager’s principals and professionals.
The current term of our Management Agreement with our Manager expires October