Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 362

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 362
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, the prudence, diversification, delegation of control and prohibited transaction provisions of ERISA, the Code and any other
applicable Similar Laws.

Prohibited Transaction Issues

Section 406 of ERISA
and Section 4975 of the Code (which also applies to IRAs that are subject to ERISA) prohibit ERISA Plans from engaging in specified
transactions involving plan assets with persons or entities who are “parties in interest,” within the meaning of ERISA, or
“disqualified persons,” within the meaning of Section 4975 of the Code, unless an exemption is available. A party in
interest or disqualified person who engages in a non-exempt prohibited transaction may be subject to excise taxes and other penalties
and liabilities under ERISA and the Code, and may cause the disqualification of an IRA and the immediate taxation of the IRA’s assets.
In addition, the fiduciary of an ERISA Plan that engages in such a non-exempt prohibited transaction may be subject to penalties and liabilities
under ERISA and the Code.

Whether or not our underlying
assets are deemed to include “plan assets,” as described below, the acquisition and/or holding of shares of our Series A
Redeemable Preferred Stock by an ERISA Plan with respect to which we or the initial purchaser is considered a party in interest or a disqualified
person may constitute or result in a direct or indirect prohibited transaction under Section 406 of ERISA and/or Section 4975
of the Code, unless the investment is acquired and is held in accordance with an applicable statutory, class or individual prohibited
transaction exemption. In this regard, the Department of Labor (the “DOL”) has issued prohibited transaction class exemptions,
or “PTCEs,” that may apply to the acquisition and holding of our Series A Redeemable Preferred Stock. These class exemptions
include, without limitation, PTCE 84-14 relating to transactions determined by independent qualified professional asset managers,
PTCE 90-1 relating to insurance company pooled separate accounts, PTCE 91-38 relating to bank collective investment funds, PTCE 95-60
relating to life insurance company general accounts and PTCE 96-23 relating to transactions determined by in-house asset managers.
In addition, Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code provide an exemption from the prohibited transaction
provisions of ERISA and the Code for certain transactions, provided that neither the issuer of the securities nor