Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 102

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 102
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% 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
offered REITs.” Pursuant to Revenue Procedure 2017-45, the IRS will treat the distribution of stock pursuant to an elective cash/stock
dividend as a distribution of property under Section 301 of the Code (i.e., a dividend), as long as at least 20% of the total dividend
is available in cash and certain other parameters detailed in the Revenue Procedure are satisfied. On November 30, 2021, the IRS
issued Revenue Procedure 2021-53, which temporarily reduced (through June 30, 2022) the minimum amount of the distribution that must
be available in cash to 10%.

If we make any taxable dividend
payable in cash and common stock, taxable stockholders receiving such dividend