Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 72

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 72
---
 For
additional information, see “Management’s Discussion and Analysis of Financial Conditions and Results of Operations—Liquidity
and Capital Resources.”

The Operating Partnership’s private placements of beneficial interests in specific Delaware statutory trusts under our DST Program could subject us to liabilities from litigation or otherwise.

We, through the Operating
Partnership, have commenced a program to raise capital in private placements exempt from registration under Section 506(c) of
the Securities Act through the sale of beneficial interests in specific Delaware statutory trusts, or DSTs, holding real properties,
which may include properties currently indirectly owned by the Operating Partnership.

These interests may serve
as replacement properties for investors seeking to complete like-kind exchange transactions under Section 1031 of the Code. Properties
in which underlying interests are sold to investors pursuant to such private placements will be leased-back by the Operating Partnership
or a wholly owned subsidiary thereof, as applicable, and fully guaranteed by the Operating Partnership, although there can be no assurance
that the Operating Partnership can or will fulfill these guarantee obligations. Additionally, the Operating Partnership will be given
the FMV Option with respect to each DST in the DST Program, giving it the right, but not the obligation, to acquire the interests in
the DST from the investors at a later time in exchange for OP Units. Investors who acquired interests pursuant to such private placements
may have been seeking certain tax benefits that depend on the interpretation of, and compliance with, federal and state income tax laws
and regulations. As the general partner of the Operating Partnership, we may become subject to liability, from litigation or otherwise,
as a result of such transactions, including in the event an investor fails to qualify for any desired tax benefits.

<div align='center'>34</div>

The Operating Partnership’s private placements of beneficial interests in specific Delaware statutory trusts under our DST Program will not shield us from risks related to the performance of the real properties held through such structures.

Pursuant to the DST Program,
the Operating Partnership intends to place certain of its existing real properties and/or acquire new properties to place into specific
DSTs and then sell interests, via its TRS, in such trusts to third party investors. We will hold long-term leasehold interests in the
property pursuant to master leases that are fully guaranteed by our Operating Partnership, while the third-party investors indirectly
hold some or all of the interests in the real estate. There can be no assurance that the Operating Partnership can or will fulfill these
guarantee obligations. Although we will hold the FMV