Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 348

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 348
---
 will not be qualifying income for
purposes of the 75% gross income test will be equal to the interest income attributable to the portion of the principal amount of the
loan that is not secured by real property, that is, the amount by which the loan exceeds the value of the real estate that is security
for the loan. However, in the case of a loan that is secured by both real property and personal property, if the fair market value of
such personal property does not exceed 15% of the total fair market value of all property securing the loan, then the personal property
securing the loan will be treated as real property for purposes of determining the interest on such loan is qualifying income for purposes
of the 75% gross income test.

Mezzanine loans are
loans secured by equity interests in an entity that directly or indirectly owns real property, rather than by a direct mortgage of
the real property. IRS Revenue Procedure 2003-65 provides a safe harbor pursuant to which a mezzanine loan, if it meets each of the
requirements contained in the Revenue Procedure, will be treated by the IRS as a real estate asset for purposes of the REIT asset
tests described below, and interest derived from it will be treated as qualifying income for both the 75% and 95% gross income test.
Although the Revenue Procedure provides a safe harbor on which taxpayers may rely, it does not prescribe rules of substantive
tax law. Moreover, we anticipate that any mezzanine loans we may originate or acquire may not meet all of the requirements for
reliance on this safe harbor. To the extent that any mezzanine loans that we originate do not qualify for the safe harbor described
above, the interest income from the loans will be qualifying income for purposes of the 95% gross income test, but there is a risk
that such interest income will not be qualifying income for purposes of the 75% gross income test. We intend to invest in any
mortgage debt and mezzanine loans in a manner that will enable us to continue to satisfy the REIT gross income and asset tests.

<div align='center'>211</div>

Dividends.
Our share of any dividends received from any corporation (including any TRS, but excluding any REIT) in which we own an equity interest
will qualify for purposes of the 95% gross income test but not for purposes of the 75% gross income test. Our share of any dividends
received from any other