Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 339

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 339
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 term of at least one year and require the tenant to pay fixed rent. We do not anticipate leasing significant amounts of personal
property pursuant to our leases. Moreover, we do not intend to perform any services other than customary ones for our tenants, unless
such services are provided through independent contractors or a TRS. Accordingly, we believe that our leases will generally produce rent
that qualifies as “rents from real property” for purposes of the 75% and 95% gross income tests.

In addition to the rent, the
tenants may be required to pay certain additional charges. To the extent that such additional charges represent reimbursements of amounts
that we are obligated to pay to third parties, such charges generally will qualify as “rents from real property.” To the extent
that such additional charges represent penalties for nonpayment or late payment of such amounts, such charges should qualify as “rents
from real property.” However, to the extent that late charges do not qualify as “rents from real property,” they instead
will be treated as interest that qualifies for the 95% gross income test.

Interest. The
term “interest” generally does not include any amount received or accrued, directly or indirectly, if the determination of
such amount depends, in whole or in part, on the income or profits of any person. However, interest generally includes the following:

| · | an amount that is based on a fixed percentage or percentages of receipts or sales; and |

| · | an amount that is based on the income or profits of a debtor, as long as the debtor derives substantially all of its income from the real property securing the debt from leasing substantially all of its interest in the property, and only to the extent that the amounts received by the debtor would be qualifying “rents from real property” if received directly by a REIT. |

If a loan contains a provision
that entitles a REIT to a percentage of the borrower’s gain upon the sale of the real property securing the loan or a percentage
of the appreciation in the property’s value as of a specific date, income attributable to that loan provision will be treated as
gain from the sale of the property securing the loan, which generally is qualifying income for purposes of both gross income tests.

We may originate or invest
in mortgage debt and/or mezzanine loans. Interest on debt secured by a mortgage on real property or on interests in real property generally
is qualifying income for purposes of the 75% gross income test. Other than