Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 368

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 368
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 Redeemable Preferred Stock is not effectively connected with the conduct of a trade
or business in the U.S. will be treated under Section 302 of the Code as a distribution that is taxable as dividend income (to the
extent of our current or accumulated earnings and profits), unless the redemption satisfies certain tests set forth in Section 302(b) of
the Code enabling the redemption to be treated as sale of our Series B Redeemable Preferred Stock (in which case the redemption will
be treated in the same manner as a sale described above in “Dispositions”). The redemption will satisfy such tests if it (i) is
“substantially disproportionate” with respect to the holder’s interest in our stock, (ii) results in a “complete
termination” of the holder’s interest in all our classes of stock, or (iii) is “not essentially equivalent to a
dividend” with respect to the holder, all within the meaning of Section 302(b) of the Code. In determining whether any
of these tests have been met, stock considered to be owned by the holder by reason of certain constructive ownership rules set forth
in the Code, as well as stock actually owned, generally must be taken into account. Because the determination as to whether any of the
three alternative tests of Section 302(b) of the Code described above will be satisfied with respect to any particular holder
of our Series B Redeemable Preferred Stock depends upon the facts and circumstances at the time that the determination must be made,
prospective investors are advised to consult their tax advisors to determine such tax treatment. If a redemption of our Series B
Redeemable Preferred Stock for cash does not meet any of the three tests described above, the redemption proceeds will be treated as a
distribution, as described above under “—Distributions.”

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Non-U.S. stockholders should
consult with their tax advisors regarding the taxation of any particular redemption of our Series B Redeemable Preferred Stock.

Information Reporting Requirements and Withholding

We will report to our stockholders
and to the IRS the amount of distributions we pay during each calendar year, and the amount of tax we withhold, if any. Under the backup
withholding rules, a stockholder may be subject to backup withholding at a rate of 24% with respect to distributions unless the stockholder:

| · | is a corporation or qualifies for certain other exempt categories and, when required, demonstrates this fact; or |

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