Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 340

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 340
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 in substantial and regular trading, in securities. Such gain is treated as nonqualifying
income for purposes of both the 75% and 95% gross income tests.

F ailure to Satisfy Gross Income Tests. If we fail to satisfy one or both of the gross income tests for any taxable year, we nevertheless may qualify as
a REIT for that year if we qualify for relief under certain provisions of the U.S. federal income tax laws. Those relief provisions are
available if:

| · | our failure to meet those tests is due to reasonable cause and not to willful neglect; and |

| · | following such failure for any taxable year, we file a schedule of the sources of our income in accordance with regulations prescribed by the Secretary of the U.S. Treasury. |

We cannot predict, however,
whether in all circumstances we would qualify for the relief provisions. In addition, as discussed above in “— Taxation of
Our Company,” even if the relief provisions apply, we would incur a 100% tax on the gross income attributable to the greater of
the amount by which we fail the 75% gross income test or the 95% gross income test multiplied, in either case, by a fraction intended
to reflect our profitability.

Asset Tests

To maintain our qualification
as a REIT, we also must satisfy the following asset tests at the end of each quarter of each taxable year. First, at least 75% of the
value of our total assets must consist of:

| · | cash or cash items, including certain receivables and money market funds and, in certain circumstances, foreign currencies; |

| · | government securities; |

| · | interests in real property, including leaseholds, options to acquire real property and leaseholds and personal property, to the extent such personal property is leased in connection with real property and rents attributable to such personal property are treated as “rents from real property”; |

| · | interests in mortgage loans secured by real property; |

| · | stock in other REITs and debt instruments issued by “publicly offered REITs”; and |

Second, of our investments
not included in the 75% asset class, the value of our interest in any one issuer’s securities may not exceed 5% of the value of
our total assets (the “5% asset test”).

Third, of our investments
not included in the 75% asset class, we may not own more than 10% of the