Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 119

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 119
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 service and for distribution to its partners
or members, including us.

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Table of Contents

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