Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 50

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 50
---
. We will
also have a limited ability to sell assets in order to fund working capital and similar capital needs. When we sell any of our properties,
we may not realize a gain on such sale. We may not elect to distribute any proceeds from the sale of properties to our stockholders; for
example, we may use such proceeds to:

| · | purchase additional properties; |

| · | fund capital commitments to our joint ventures; |

| · | repay debt, if any; |

| · | buy out interests of any co-venturers or other partners in any joint venture in which we are a party; |

| · | create working capital reserves; and/or |

| · | make repairs, maintenance, tenant improvements or other capital improvements or expenditures to our remaining properties. |

Our ability to sell our properties
may also be limited by our need to avoid a 100% penalty tax that is imposed on gain recognized by a REIT from the sale of property characterized
as held for sale to customers in the ordinary course of business. In order to ensure that we avoid such characterization, we may be required
to hold our properties for the production of rental income for a minimum period of time, generally two years, and comply with certain
other requirements in the Internal Revenue Code of 1986, as amended (the “Code”). As such, we could be restricted from selling
a property at an opportune time to maximize proceeds.

Representations and warranties made by us in connection with sales of our properties may subject us to liability that could result in losses and could harm our operating results and, therefore, distributions we make to our stockholders.

When we sell a property, we
may be required to make representations and warranties regarding the property and other customary items. In the event of a breach of such
representations or warranties, the purchaser of the property may have claims for damages against us, rights to indemnification from us
or otherwise have remedies against us. In any such case, we may incur liabilities that could result in losses and could harm our operating
results and, therefore distributions we make to our stockholders.

Our investments could be adversely affected if a member of our Bluerock operating partner network performs poorly at one or more of our projects, which could adversely affect returns to our stockholders.

In general, we expect to rely
on members of our operating partner network for the day-to-day management and development of our real estate investments. Members of our
network are not fiduciaries to us, and