Company: BHM
Filing Date: 2025-01-16
Form Type: 8-K/A
Source: 0001104659-25-004088
Chunk: 8

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-01-16
Form: 8-K/A
Chunk 8
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 effective interest method. Amortization expense for the year ended December 31, 2023 was $76,528. Unamortized
loan costs are reflected on the consolidated balance sheet as a reduction to the related mortgage notes payable.

Income Taxes

As a limited partnership, the Company’s
taxable income or loss is allocated to the Partners in accordance with the limited partnership agreement and is reflected in their income
tax returns; accordingly, the accompanying consolidated financial statements do not reflect a provision or liability for federal and state
income taxes.

The Partners assess tax positions of the Company
at each reporting period in order to determine whether a tax position of the Company is more likely than not to be sustained upon examination
by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits
of the position. Any tax benefit that is determined to not be sustainable would be reported as income tax expense in the consolidated
statement of operations. There was no such expense for the year ended December 31, 2023. The Company is subject to examination by major
jurisdictions for the 2019 through 2023 tax years.

| 3. | Mortgage Notes Payable |

The mortgages are secured by the rental property,
assignment of leases and rents, and substantially all of the restricted cash. An affiliate of the Electra Partner is a guarantor on the
loans.

The loan agreements provides for the following:

| Borrower           
 Amira at Westly LP |     | Amount of Loan | 42,450,000 |     | Interest Rate | 3.85 | % |     | Maturity Date  
 August 1, 2029 |     | Balance at        
 December 31, 2023 | 42,450,000 |
|:-------------------|:----|:---------------|-----------:|:----|:--------------|-----:|:--|:----|:---------------|:----|:------------------|-----------:|
| Amira at Westly LP |     | $              | 12,939,000 |     |               | 3.84 | % |     | August 1, 2029 |     | $                 | 12,939,000 |

Future minimum principal payments due are summarized
as follows:

| Year Ending December 31 
 2024                    |     | Amount |    317,721 |
|:------------------------|:----|:-------|-----------:|
| 2025