Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 74

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 74
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 Code, then tax will be triggered on the DST Investors’ built in gain. Although we are not
contractually obligated to do so, we may seek to execute a 1031 exchange in such situations rather than trigger gain. Any replacement
property acquired in connection with a 1031 exchange will similarly be tied to the DST Investors with similar considerations if such
replacement property ever is sold. As a result of these factors, placing properties into the DST Program may limit our ability to access
liquidity from such properties or replacement properties through sale without triggering taxes due to the built in gain tied to DST Investors.
Such reduced liquidity could impair our ability to utilize cash proceeds from sales for other purposes such as paying down debt, paying
distributions, funding redemptions or making additional investments.

RISKS RELATED TO OUR MANAGEMENT AND RELATIONSHIPS WITH OUR MANAGER

We are dependent on our Manager and its key personnel for our success.

We will be externally advised
by our Manager and, pursuant to the Management Agreement, our Manager will not be obligated to dedicate any specific personnel exclusively
to us, nor will its personnel be obligated to dedicate any specific portion of their time to the management of our business. As a result,
we cannot provide any assurances regarding the amount of time our Manager will dedicate to the management of our business. Moreover,
each of our officers will also be an employee of our Manager or one of its affiliates, and will have significant responsibilities for
other investment vehicles currently managed by Bluerock affiliates, and may not always be able to devote sufficient time to the management
of our business. Consequently, we may not receive the level of support and assistance that we otherwise might receive if we were internally
managed.

In addition, we offer no
assurance that our Manager will remain our manager or that we will continue to have access to our Manager’s principals and professionals.
The current term of our Management Agreement with our Manager expires October 6, 2025 with automatic one-year renewals thereafter,
and may be terminated earlier under certain circumstances. If the Management Agreement is terminated or not renewed and no suitable replacement
is found to manage us, we may not be able to execute our business plan, which could have a material adverse effect on our results of
operations and our ability to make distributions to our stockholders.

Our Manager may not be successful in identifying and consummating suitable investment opportunities.

Our investment strategy will
require us, through our Manager, to identify suitable investment opportunities compatible with our investment criteria. Our Manager