Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 347

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 347
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 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 to the extent described below, if a loan is secured by real
property and other property and the highest principal amount of a loan outstanding during a taxable year exceeds the fair market value
of the real property securing the loan as of the date the REIT agreed to originate or acquire the loan (or, if there has been a “significant
modification” to the loan since its origination or acquisition by the REIT, then as of the date of that “significant modification”),
a portion of the interest income from such loan will not be qualifying income for purposes of the 75% gross income test, but will be
qualifying income for purposes of the 95% gross income test. The portion of the interest income that