Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 101

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 101
---
 its partners or members, including us.

Distribution requirements imposed by law limit our flexibility.

To maintain our qualification
as a REIT for U.S. federal income tax purposes, we generally will be required to distribute to our stockholders at least 90% of our REIT
taxable income, determined without regard to the dividends paid deduction and excluding net capital gains, each year. We also will be
subject to tax at regular corporate income tax rates to the extent that we distribute less than 100% of our taxable income (including
net capital gains) each year.

In addition, we will be subject
to a 4% nondeductible excise tax to the extent that we fail to distribute during any calendar year at least the sum of 85% of our ordinary
income for that calendar year, 95% of our capital gain net income for the calendar year, and any amount of that income that was not distributed
in prior years.

We intend to make distributions
to our stockholders to comply with the distribution requirements of the Code as well as to reduce our exposure to U.S. federal income
taxes and the nondeductible excise tax. Differences in timing between the receipt of income and the payment of expenses to arrive at taxable
income, along with the effect of required debt amortization payments, could require us to borrow funds to meet the distribution requirements
that are necessary to achieve the tax benefits associated with qualifying as a REIT, even if our management believes that the then prevailing
market conditions generally are not favorable for such borrowings or that such borrowings would not be advisable in the absence of such
tax considerations. If we borrow money to meet such distribution requirements or for other working capital needs, our expenses will increase,
our net income will be reduced by the amount of interest we pay on the money we borrow and we will be obligated to repay the money we
borrow from future earnings or by selling assets, which may decrease future distributions to stockholders.

We may pay dividends on our common stock in common stock and/or cash. Our stockholders may sell shares of our common stock to pay tax on such dividends, placing downward pressure on the market price of our common stock.

In order to satisfy our REIT
distribution requirements, we are permitted, subject to certain conditions and limitations, to make distributions that are in part payable
in shares of our common stock. The IRS has issued Revenue Procedure 2017-45 authorizing elective cash/stock dividends to be made by “publicly
off