Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 339

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 339
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| · | If we fail to satisfy one                                                                                                                 
 or more requirements for REIT qualification, other than the gross income tests and the asset tests, and such failure is due to reasonable 
 cause and not to willful neglect, we will be required to pay a penalty of $50,000 for each such failure.                                  |

| · | the amount of gain that                                  
 we recognize at the time of the sale or disposition, and |

| · | the amount of gain that                                                       
 we would have recognized if we had sold the asset at the time we acquired it. |

| · | We may be required to pay                                                                                                            
 monetary penalties to the IRS in certain circumstances, including if we fail to meet record-keeping requirements intended to monitor 
 our compliance with rules relating to the composition of a REIT’s stockholders, as described below in “— Recordkeeping               
 Requirements.”                                                                                                                       |

| · | The earnings of any lower-tier                                                                                        
 entities that are subchapter C corporations, including our TRSs will be subject to U.S. federal corporate income tax. |

In addition, notwithstanding
our qualification as a REIT, we may also have to pay certain state and local income taxes because not all states and localities treat
REITs in the same manner that they are treated for U.S. federal income tax purposes. Moreover, as further described below, our TRSs will
be subject to U.S. federal, state and local corporate income tax on their taxable income.

Requirements for Qualification as a REIT

A REIT is a corporation,
trust, or association that meets each of the following requirements:

| 1. | It is managed by one or     
 more trustees or directors. |

| 2. | Its beneficial ownership                                                                     
 is evidenced by transferable shares, or by transferable certificates of beneficial interest. |

| 3. | It would be taxable as                                                                   
 a domestic corporation, but for the REIT provisions of the U.S. federal income tax laws. |

| 4. | It is neither a financial                                                                               
 institution nor an insurance company subject to special provisions of the U.S. federal income tax laws. |

| 5. | At least 100 persons are                                   
 beneficial owners of its shares or ownership certificates. |

| 6. | Not more than 50% in value                                                                                                         
 of its outstanding shares or ownership certificates is owned, directly or indirectly, by five or fewer individuals, which the Code 
 defines to include certain entities