Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 316

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 316
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 of U.S. federal income taxation. For example, deductions
are disallowed for business interest expense (even if paid to third parties) in excess of the sum of a taxpayer’s business interest
income and 30% of the adjusted taxable income of the business, which is its taxable income computed without regard to business interest
income or expense, net operating losses (“NOLs”) or the pass-through income deduction. Such limitations may also impact the
amount of U.S. federal income tax paid by a TRS. Further, the TRS rules impose a 100% excise tax on certain transactions between
a TRS and its parent REIT, such as intercompany loans, or the REIT’s tenants that are not conducted on an arm’s-length basis.

A TRS may not directly or
indirectly operate or manage any healthcare facilities or lodging facilities or provide rights to any brand name under which any healthcare
facility or lodging facility is operated. A TRS is not considered to operate or manage a “qualified healthcare property” or
“qualified lodging facility” solely because the TRS directly or indirectly possesses a license, permit, or similar instrument
enabling it to do so.

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Rent that we receive from
a TRS will qualify as “rents from real property” as long as (1) at least 90% of the leased space in the property is leased
to persons other than TRSs and related-party tenants, and (2) the amount paid by the TRS to rent space at the property is substantially
comparable to rents paid by other tenants of the property for comparable space, as described in further detail below under “—
Gross Income Tests — Rents from Real Property.” If we lease space to a TRS in the future, we will seek to comply with these
requirements.

Gross Income Tests. We must satisfy two gross income tests annually to maintain our qualification as a REIT. First, at least
75% of our gross income for each taxable year must consist of defined types of income that we derive, directly or indirectly, from investments
relating to real property or mortgages on real property or qualified temporary investment income. Qualifying income for purposes of the
75% gross income test generally includes:

| · | rents from real property; |

| · | interest on debt secured by mortgages on real property, or on interests in real property; |

| · | dividends or other distributions on, and gain from