Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 50

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 50
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 working capital reserves; and/or |

| · | make repairs, maintenance, tenant improvements or other capital improvements or expenditures to our remaining properties. |

Our ability to sell our properties
may also be limited by our need to avoid a 100% penalty tax that is imposed on gain recognized by a REIT from the sale of property characterized
as held for sale to customers in the ordinary course of business. In order to ensure that we avoid such characterization, we may be required
to hold our properties for the production of rental income for a minimum period of time, generally two years, and comply with certain
other requirements in the Internal Revenue Code of 1986, as amended (the “Code”). As such, we could be restricted from selling
a property at an opportune time to maximize proceeds.

Representations and warranties made by us in connection with sales of our properties may subject us to liability that could result in losses and could harm our operating results and, therefore, distributions we make to our stockholders.

When we sell a property, we
may be required to make representations and warranties regarding the property and other customary items. In the event of a breach of such
representations or warranties, the purchaser of the property may have claims for damages against us, rights to indemnification from us
or otherwise have remedies against us. In any such case, we may incur liabilities that could result in losses and could harm our operating
results and, therefore distributions we make to our stockholders.

Our investments could be adversely affected if a member of our Bluerock operating partner network performs poorly at one or more of our projects, which could adversely affect returns to our stockholders.

In general, we expect to rely
on members of our operating partner network for the day-to-day management and development of our real estate investments. Members of our
network are not fiduciaries to us, and generally will have limited capital invested in a project, if any. One or more members of our network
may perform poorly in managing our project investments for a variety of reasons, including failure to properly adhere to budgets or properly
implement the property business plan. A member of our network may also underperform for strategic reasons related to projects or assets
that the partner is involved in with a Bluerock affiliate but not our company. If a member of our network does not perform well, we may
not be able to ameliorate the adverse effects of poor performance by terminating the partner and finding a replacement partner to manage
our projects in a timely