Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 350

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 350
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 of such exemption or reduction. We will not pay any additional amounts in respect
of any amounts withheld.

Dispositions.
Subject to the discussion below regarding dispositions by “qualified shareholders” and “qualified foreign pension funds,”
non-U.S. stockholders could incur tax under FIRPTA with respect to gain realized upon a disposition of our Series A Redeemable Preferred
Stock if we are a United States real property holding corporation, or USRPHC, during a specified testing period. If at least 50% of a
REIT’s assets are USRPIs, then the REIT will be a USRPHC. We anticipate that we will be a USRPHC based on our investment strategy.
However, even if we are a USRPHC, a non-U.S. stockholder generally would not incur tax under FIRPTA on gain from the sale of our Series A
Redeemable Preferred Stock if we are a “domestically controlled qualified investment entity.”

A “domestically controlled
qualified investment entity” includes a REIT in which, at all times during a specified testing period, less than 50% in value of
its shares are held directly or indirectly by non-U.S. stockholders. We cannot assure you that this test has been or will be met.

If our Series A Redeemable
Preferred Stock is regularly traded on an established securities market, an additional exception to the tax under FIRPTA will be available
with respect to a non-U.S. stockholder’s disposition of such stock, even if we do not qualify as a domestically controlled qualified
investment entity at the time the non-U.S. stockholder sells such stock. Under this additional exception, the gain from such a sale by
a non-U.S. stockholder will not be subject to tax under FIRPTA if (1) the applicable class of our capital stock is treated as being
regularly traded on an established securities market under applicable Treasury Regulations and (2) the non-U.S. stockholder owned,
actually or constructively, 10% or less of that class of our Series A Redeemable Preferred Stock at all times during a specified
testing period. Following this offering, our Series A Redeemable Preferred Stock will not be regularly traded on an established securities
market.

In addition, a sale of our
capital stock by a “qualified shareholder” or a “qualified foreign pension fund” who holds our capital stock directly
or indirectly (through one or more partnerships