Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 327

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 327
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 transactions, is qualifying income for purposes of the 75% gross income test described above in “— Gross Income Tests.” |

For purposes of the 10% value
test, our proportionate share of the assets of a partnership is our proportionate interest in any securities issued by the partnership,
without regard to the securities described in the last two bullet points above.

As described above, Revenue
Procedure 2003-65 provides a safe harbor pursuant to which certain mezzanine loans secured by a first priority security interest in ownership
interests in a partnership or limited liability company will be treated as qualifying assets for purposes of the 75% asset test (and therefore,
are not subject to the 5% asset test, the 10% vote test and the 10% value test). See “— Gross Income Tests.” Although
we anticipate that our mezzanine loans typically will not qualify for that safe harbor, we believe our mezzanine loans should be treated
as qualifying assets for the 75% asset test or should be excluded from the definition of securities for purposes of the 10% vote test
and the 10% value test. We intend to make mezzanine loans only to the extent that such loans will not cause us to fail the asset tests
described above.

We will monitor the status
of our assets for purposes of the various asset tests and will manage our portfolio in order to comply at all times with such tests. However,
there is no assurance that we will not inadvertently fail to comply with such tests. If we fail to satisfy the asset tests at the end
of a calendar quarter, we will not lose our REIT qualification if:

| · | we satisfied the asset tests at the end of the preceding calendar quarter; and |

| · | the discrepancy between the value of our assets and the asset test requirements arose from changes in the market values of our assets and was not wholly or partly caused by the acquisition of one or more non-qualifying assets. |

If we did not satisfy the
condition described in the second item, above, we still could avoid disqualification by eliminating any discrepancy within 30 days after
the close of the calendar quarter in which it arose.

If we violate the 5% asset
test, the 10% vote test or the 10% value test described above at the end of any quarter of each taxable year, we will not lose our REIT
qualification if (1) the failure is de minimis(up to the lesser of 1