Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 316

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 316
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 REIT qualification tests. Our proportionate share for purposes of the 10% value
test (see “— Asset Tests”) is based on our proportionate interest in the equity interests and certain debt securities
issued by the partnership. For all of the other asset and income tests, our proportionate share is based on our proportionate interest
in the capital interests in the partnership. Our proportionate share of the assets, liabilities, and items of income of any partnership,
joint venture, or limited liability company that is treated as a partnership for U.S. federal income tax purposes in which we acquire
an equity interest, directly or indirectly, will be treated as our assets and gross income for purposes of applying the various REIT qualification
requirements.

We have control of our Operating
Partnership and intend to control any subsidiary partnerships and limited liability companies, and we intend to operate them in a manner
consistent with the requirements for our qualification as a REIT. We may from time to time be a limited partner or non-managing member
in some of our partnerships and limited liability companies. If a partnership or limited liability company in which we own an interest
takes or expects to take actions that could jeopardize our qualification as a REIT or require us to pay tax, we may be forced to dispose
of our interest in such entity. In addition, it is possible that a partnership or limited liability company could take an action which
could cause us to fail a gross income or asset test, and that we would not become aware of such action in time to dispose of our interest
in the partnership or limited liability company or take other corrective action on a timely basis. In that case, we could fail to qualify
as a REIT unless we were able to qualify for a statutory REIT “savings” provision, which could require us to pay a significant
penalty tax to maintain our REIT qualification.

Taxable REIT Subsidiaries. A REIT may own up to 100% of the stock of one or more TRSs. A TRS is a fully taxable corporation that
may earn income that would not be qualifying income if earned directly by the parent REIT. The subsidiary and the REIT must jointly elect
to treat the subsidiary as a TRS. A corporation (other than a REIT) of which a TRS directly or indirectly owns more than 35% of the voting
power or value of the outstanding securities will automatically be treated as a TRS. We will not be treated