Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 329

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 329
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 declaration and elect in our tax return to have a specified dollar amount of such distribution treated as if paid during the prior
year or (2) declare the distribution in October, November or December of the taxable year, payable to stockholders of record
on a specified day in any such month, and we actually pay the dividend before the end of January of the following year. The distributions
under clause (1) are taxable to the stockholders in the year in which paid, and the distributions in clause (2) are treated
as paid on December 31st of the prior taxable year to the extent of our earnings and profits. In both instances, these distributions
relate to our prior taxable year for purposes of the 90% distribution requirement.

Further, to the extent we
are not a “publicly offered REIT,” in order for our distributions to be counted as satisfying the annual distribution requirement
for REITs and to provide us with the REIT-level tax deduction, such distributions must not be “preferential dividends.” A
dividend is not a preferential dividend if that distribution is (1) pro rata among all outstanding shares within a particular class
and (2) in accordance with the preferences among different classes of shares as set forth in our organizational documents. However,
the preferential dividend rule does not apply to “publicly offered REITs.” Currently, we are a “publicly offered
REIT.”

We will pay U.S. federal income
tax on taxable income, including net capital gain, that we do not distribute to stockholders. Furthermore, if we fail to distribute during
a calendar year, or by the end of January following the calendar year in the case of distributions with declaration and record dates
falling in the last three months of the calendar year, at least the sum of:

| · | 85% of our REIT ordinary income for such year, |

| · | 95% of our REIT capital gain net income for such year, and |

| · | any undistributed taxable income (ordinary and capital gain) from all prior periods, |

then, we will incur a 4% nondeductible excise
tax on the excess of such required distribution over the amounts we actually distribute. In making this calculation, the amount that a
REIT is treated as having “actually distributed” during the current taxable year is both the amount distributed during the
current year and the amount by which the distributions during the prior year exceeded its taxable income and capital