Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 70

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 70
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 Gross Income Test”).

These and other REIT provisions
of the Code may limit our ability to hedge the risks inherent to our operations. From time to time, we may enter into hedging transactions
with respect to one or more of our assets or liabilities. Our hedging transactions may include entering into interest rate swaps, caps
and floors, options to purchase these items, and futures and forward contracts. Any income or gain derived by us from transactions that
hedge certain risks, such as the risk of changes in interest rates, will not be treated as gross income for purposes of either the 75%
Gross Income Test or the 95% Gross Income Test if specific requirements are met. Such requirements include that the hedging transaction
be properly identified within prescribed time periods and that the transaction either (1) hedge risks associated with indebtedness
issued by us that is incurred to acquire or carry real estate assets, (2) manage the risks of currency fluctuations with respect
to income or gain that qualifies under the 75% Gross Income Test or 95% Gross Income Test (or assets that generate such income), or (3) offset
a transaction described in (1) or (2) if a portion of the hedge indebtedness is extinguished or the related property disposed
of. To the extent that we do not properly identify such transactions as hedges, hedge with other types of financial instruments, or hedge
other types of indebtedness, the income from those transactions is not likely to be treated as qualifying income for purposes of the
75% Gross Income Test and the 95% Gross Income Test. As a result of these rules, we may have to limit the use of hedging techniques that
might otherwise be advantageous, which could result in greater risks associated with interest rate or other changes than we would otherwise
incur.

You may not receive any profits resulting from the sale of one of our properties, or receive such profits in a timely manner, because we may provide financing for the purchaser of such property.

If we liquidate our company,
you may experience a delay before receiving your share of the proceeds of such liquidation. In a forced or voluntary liquidation, we
may sell our properties either subject to or upon the assumption of any then-outstanding mortgage debt or, alternatively, may provide
financing to purchasers. We may take a purchase-money obligation secured by a mortgage as partial payment. We do not have any limitations
or restrictions on our taking such purchase-money obligations. To the extent that we