Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 324

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 324
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ases 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 be made, or ordinary obligations incurred or to be incurred, to acquire or carry real estate assets, (2) any transaction
entered into primarily to manage the risk of currency fluctuations with respect to any item of income or gain that would be qualifying
income under the 75% or 95% gross income test (or any property which generates such income or gain), and (3) any