Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 309

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 309
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partnership real estate investment trust (an “UPREIT”). An UPREIT is a structure that allows REITs the ability to acquire
real property from sellers on a tax-deferred basis (to the sellers), as sellers can generally defer taxable gain that otherwise would
be required to be recognized by them upon the disposition of their property when such property is exchanged for interests in an operating
partnership. Such sellers may also desire to achieve diversity in their investment and other benefits afforded to stockholders in a REIT.
We believe that our Operating Partnership has been, and will continue to be, treated as a partnership for U.S. federal income tax purposes.
As a result, our proportionate share of the assets and income of our Operating Partnership are be deemed to be our own assets and income
for purposes of satisfying the asset and gross income tests for qualification as a REIT.

We are obligated to contribute
the net proceeds of any future offering of shares as additional capital to our Operating Partnership and will be deemed to have made additional
capital contributions in the amount of the gross offering proceeds we receive. If we contribute additional capital to our Operating Partnership,
we will receive additional OP Units and our percentage interest will be increased on a proportionate basis based upon the amount of such
additional capital contributions and the value of our Operating Partnership at the time of such contributions. Conversely, the percentage
interests of the limited partners will be decreased on a proportionate basis in the event of additional capital contributions by us. The
partnership agreement provides that if our Operating Partnership requires additional funds at any time in excess of funds available to
our Operating Partnership from cash flow, borrowings by our Operating Partnership or capital contributions, we may borrow such funds from
a financial institution or other lenders and lend such funds to our Operating Partnership on the same terms and conditions as are applicable
to our borrowing of such funds. In addition, if we contribute additional capital to our Operating Partnership, we will revalue the property
of our Operating Partnership to its fair market value (as determined by us) and the capital accounts of the partners will be adjusted
to reflect the manner in which the unrealized gain or loss inherent in such property (that has not been reflected in the capital accounts
previously) would be allocated among the partners under the terms of the partnership agreement, if there were a taxable disposition of
such property for its fair market value (as determined by us) on the date of the revaluation.

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