Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 329

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 329
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 tests and will manage our portfolio in order to comply at all times with such tests. However,
there is no assurance that we will not inadvertently fail to comply with such tests. If we fail to satisfy the asset tests at the end
of a calendar quarter, we will not lose our REIT qualification if:

| · | we satisfied the asset tests at the end of the preceding calendar quarter; and |

| · | the discrepancy between the value of our assets and the asset test requirements arose from changes in the market values of our assets and was not wholly or partly caused by the acquisition of one or more non-qualifying assets. |

If we did not satisfy the
condition described in the second item, above, we still could avoid disqualification by eliminating any discrepancy within 30 days after
the close of the calendar quarter in which it arose.

If we violate the 5% asset
test, the 10% vote test or the 10% value test described above at the end of any quarter of each taxable year, we will not lose our REIT
qualification if (1) the failure is de minimis(up to the lesser of 1% of the value of our assets or $10 million)
and (2) we dispose of assets causing the failure or otherwise comply with the asset tests within six months after the last day of
the quarter in which we identify such failure. In the event of a failure of any of the asset tests (other than de minimisfailures
described in the preceding sentence), as long as the failure was due to reasonable cause and not to willful neglect, we will not lose
our REIT qualification if we (1) dispose of assets causing the failure or otherwise comply with the asset tests within six months
after the last day of the quarter in which we identify the failure, (2) file a description of each asset causing the failure with
the IRS and (3) pay a tax equal to the greater of $50,000 or 21% of the net income from the assets causing the failure during the
period in which we failed to satisfy the asset tests.

Currently, we believe that
our assets satisfy the foregoing asset test requirements. However, we will not obtain independent appraisals to support our conclusions
as to the value of our assets. Moreover, the values of some assets may not be susceptible to a precise determination. As a result, there
can be no assurance that the IRS will not contend that our ownership of assets violates one or more of