Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 338

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 338
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 or anticipated; and |

| · | for which the REIT makes a proper election to treat the property as foreclosure property. |

A REIT will not be considered
to have foreclosed on a property where the REIT takes control of the property as a mortgagee-in-possession and cannot receive any profit
or sustain any loss except as a creditor of the mortgagor. Property generally ceases to be foreclosure property at the end of the third
taxable year (or, with respect to qualified healthcare property, the second taxable year) following the taxable year in which the REIT
acquired the property, or longer if an extension is granted by the Secretary of the U.S. Treasury. However, this grace period terminates
and foreclosure property ceases to be foreclosure property on the first day:

| · | on which a lease is entered into for the property that, by its terms, will give rise to income that does not qualify for purposes of the 75% gross income test, or any amount is received or accrued, directly or indirectly, pursuant to a lease entered into on or after such day that will give rise to income that does not qualify for purposes of the 75% gross income test; |

| · | on which any construction takes place on the property, other than completion of a building or any other improvement, where more than 10% of the construction was completed before default became imminent; or |

| · | which is more than 90 days after the day on which the REIT acquired the property and the property is used in a trade or business which is conducted by the REIT, other than through an independent contractor from whom the REIT itself does not derive or receive any income or through a TRS. |

Hedging Transactions.
From time to time, we or our Operating Partnership may enter into hedging transactions with respect to one or more of our assets or liabilities.
Our hedging activities may include entering into interest rate swaps, caps, and floors, options to purchase such items, and futures and
forward contracts. Income and gain from “hedging transactions” will be excluded from gross income for purposes of both the
75% and 95% gross income tests provided we satisfy the identification requirements discussed below. A “hedging transaction”
means either (1) any transaction entered into in the normal course of our or our Operating Partnership’s trade or business
primarily to manage the risk of interest rate changes, price changes, or currency fluctuations with respect to borrowings made or to