Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 377

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 377
---
 up to ten years if it is able to satisfy certain
requirements, including not undergoing a significant change in its ownership and not acquiring a significant amount of new USRPIs,
in each case since April 24, 2024, the date the Final Regulations were issued. If a REIT fails to satisfy such requirements
during the ten-year period, then the look-through rule in the Final Regulations applicable to foreign-controlled
domestic corporations will apply to such REIT beginning on the day immediately following the date of such failure. While we cannot
predict when we will commence being subject to such look-through rule in the Final Regulations, we may not be able to satisfy
the applicable requirements for the duration of the ten-year period. Prospective investors are urged to consult with their
tax advisors regarding the application and impact of these rules.

If our Series B Redeemable
Preferred Stock is regularly traded on an established securities market, an additional exception to the tax under FIRPTA will be available
with respect to a non-U.S. stockholder’s disposition of such stock, even if we do not qualify as a domestically controlled qualified
investment entity at the time the non-U.S. stockholder sells such stock. Under this additional exception, the gain from such a sale by
a non-U.S. stockholder will not be subject to tax under FIRPTA if (1) the applicable class of our capital stock is treated as being
regularly traded on an established securities market under applicable Treasury Regulations and (2) the non-U.S. stockholder owned,
actually or constructively, 10% or less of that class of our Series B Redeemable Preferred Stock at all times during a specified
testing period. Following this offering, our Series B Redeemable Preferred Stock will not be regularly traded on an established
securities market.

In addition, a sale of our
capital stock by a “qualified shareholder” or a “qualified foreign pension fund” who holds our capital stock
directly or indirectly (through one or more partnerships) will not be subject to U.S. federal income tax under FIRPTA. However, while
a “qualified shareholder” will not be subject to FIRPTA withholding on a sale of our capital stock, non-United States persons
who hold interests in the “qualified shareholder” (other than interests solely as a creditor) and hold more than 10% of our
capital stock, either through the “qualified shareholder” or otherwise, will still be subject to FIRPTA