Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 322

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 322
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 deductions, other than income that otherwise would
be qualifying income for purposes of the 75% gross income test, less expenses directly connected with the production of that income. However,
gross income from foreclosure property will qualify under the 75% and 95% gross income tests. Gain from the sale of foreclosure property
is not subject to the 100% tax on prohibited transactions, as described below.

Foreclosure property is any
real property, including interests in real property, and any personal property incident to such real property:

| · | that is acquired by a REIT as the result of the REIT having bid on such property at foreclosure, or having otherwise reduced such property to ownership or possession by agreement or process of law, after there was a default or when default was imminent on a lease of such property or on indebtedness that such property secured; |

| · | for which the related loan was acquired by the REIT at a time when the default was not imminent 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