Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 323

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 323
---
 we own an equity interest
will qualify for purposes of the 95% gross income test but not for purposes of the 75% gross income test. Our share of any dividends received
from any other REIT in which we own an equity interest, if any, will be qualifying income for purposes of both gross income tests.

<div align='center'>159</div>

Fee Income. Fee income generally will not be qualifying income for purposes of both the 75% and 95% gross income tests. Any
fees earned by a TRS will not be included for purposes of the gross income tests, but will be subject to U.S. federal corporate income
tax, as described above. In addition, we will be subject to a 100% excise tax on any fees earned by a TRS for services provided to us
if such fees were pursuant to an agreement determined by the IRS to be not on an arm’s-length basis.

Foreclosure Property. We will be subject to tax at the maximum U.S. federal corporate income tax rate (currently 21%) on any income
from foreclosure property, which includes certain foreign currency gains and related deductions, other than income that otherwise would
be qualifying income for purposes of the 75% gross income test, less expenses directly connected with the production of that income. However,
gross income from foreclosure property will qualify under the 75% and 95% gross income tests. Gain from the sale of foreclosure property
is not subject to the 100% tax on prohibited transactions, as described below.

Foreclosure property is any
real property, including interests in real property, and any personal property incident to such real property:

| · | that is acquired by a REIT as the result of the REIT having bid on such property at foreclosure, or having otherwise reduced such property to ownership or possession by agreement or process of law, after there was a default or when default was imminent on a lease of such property or on indebtedness that such property secured; |

| · | for which the related loan was acquired by the REIT at a time when the default was not imminent or anticipated; and |

| · | for which the REIT makes a proper election to treat the property as foreclosure property. |

A REIT will not be considered
to have foreclosed on a property where the REIT takes control of the property as a mortgagee-in-possession and cannot receive any profit
or sustain any loss except as a creditor of the mortgagor. Property generally ce