Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 104

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 104
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” of Bluerock Residential.
Under applicable Treasury Regulations, if Bluerock Residential failed to qualify as a REIT during certain periods prior to the Distribution,
unless Bluerock Residential’s failure were subject to relief under U.S. federal income tax laws, we would be prevented from electing
to qualify as a REIT prior to the fifth calendar year following the year in which Bluerock Residential failed to so qualify.

If certain of our subsidiaries, including our Operating Partnership, fail to qualify as partnerships or disregarded entities for U.S. federal income tax purposes, we would cease to qualify as a REIT and suffer other material adverse consequences.

We intend that our Operating
Partnership will be treated as a partnership for U.S. federal income tax purposes, and that our other subsidiaries (other than any TRSs)
will each be treated as a partnership or disregarded entity for U.S. federal income tax purposes and, therefore, will not be subject to
U.S. federal income tax on its income. Instead, each of its partners or its member, as applicable, which may include us, will be allocated,
and may be required to pay tax with respect to, such partner’s or member’s share of its income. We cannot assure you that
the IRS will not challenge the status of any subsidiary partnership or limited liability company in which we own an interest as a disregarded
entity or partnership for U.S. federal income tax purposes, or that a court would not sustain such a challenge. If the IRS were successful
in treating any subsidiary partnership or limited liability company as an entity taxable as a corporation for U.S. federal income tax
purposes, we could fail to meet the gross income tests and certain of the asset tests applicable to REITs and, accordingly, we would likely
cease to qualify as a REIT. Also, the failure of any subsidiary partnerships or limited liability company to qualify as a disregarded
entity or partnership for applicable income tax purposes could cause it to become subject to federal and state corporate income tax, which
would reduce significantly the amount of cash available for debt service and for distribution to its partners or members, including us.

Distribution requirements imposed by law limit our flexibility.

To maintain our qualification
as a REIT for U.S. federal income tax purposes, we generally will be required to distribute to our stockholders at least 90% of our REIT
taxable income, determined without regard to the dividends paid deduction and excluding net capital gains, each year. We