Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 101

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 101
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 and local taxes; and |

| · | unless we are entitled to relief under applicable statutory provisions, we could not elect to be taxed as a REIT for four taxable years following the year during which we were disqualified. |

Any such corporate tax liability
could be substantial and would reduce our cash available for, among other things, our operations and distributions to stockholders. In
addition, if we fail to maintain our qualification as a REIT, we will no longer be required to make distributions to our stockholders.
As a result of all these factors, our failure to maintain our qualification as a REIT could impair our ability to expand our business
and raise capital, and could materially and adversely affect the trading price of our common shares.

Qualification as a REIT involves
the application of highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations.
The determination of various factual matters and circumstances not entirely within our control may affect our ability to qualify as a
REIT. In order to maintain our qualification as a REIT, we must satisfy a number of requirements, including requirements regarding the
ownership of our common shares, requirements regarding the composition of our assets and requirements that certain percentages of our
gross income in any year must be derived from qualifying sources, such as “rents from real property.” Also, we must make distributions
to stockholders aggregating annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction
and excluding net capital gains. See “Material U.S. Federal Income Tax Considerations—REIT Qualification—Distribution
Requirements.” In addition, legislation, new regulations, administrative interpretations or court decisions may materially and adversely
affect our investors, our ability to qualify as a REIT for U.S. federal income tax purposes or the desirability of an investment in a
REIT relative to other investments.

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In certain circumstances, we may be subject to certain U.S. federal, state and local taxes despite our qualification as a REIT, which would reduce our cash available for distribution to you.

Even if we maintain our qualification
as a REIT, we may be subject to certain U.S. federal, state and local income, property and excise taxes on our income and assets and,
in certain cases, a 100% penalty tax on net income from any “prohibited transaction.” In addition, any taxable REIT subsidiaries
(each a “TRS”) of ours will be