Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 182

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 182
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 the Company assesses the
need for consolidation under all other provisions of ASC 810. These provisions provide for consolidation of majority-owned entities through
a majority voting interest held by the Company providing control.

In
assessing whether the Company is in control of and requiring consolidation of the limited liability company and partnership venture structures,
the Company evaluates the respective rights and privileges afforded each member or partner (collectively referred to as “member”).
The Company’s member would not be deemed to control the entity if any of the other members has either (i) substantive kickout
rights providing the ability to dissolve (liquidate) the entity or otherwise remove the managing member or general partner without cause
or (ii) substantive participating rights in the entity. Substantive participating rights (whether granted by contract or law) provide
for the ability to effectively participate in significant decisions of the entity that would be expected to be made in the ordinary course
of business.

The
Company analyzes each investment that involves real estate acquisition, development, and construction to consider whether the investment
qualifies as an investment in a real estate acquisition, development, and construction arrangement. The Company has evaluated its real
estate investments as required by ASC 310-10 Receivables and concluded that no investments are considered
an investment in a real estate acquisition, development, or construction arrangement. As such, the Company next evaluates if these investments
are considered a security under ASC 320 Investments – Debt Securities.

For
investments that meet the criteria of a security under ASC 320 Investments – Debt Securities,
the Company classifies each investment as an available-for-sale (“AFS”) debt security as it does not have the positive intent
to hold all investments to maturity. The Company accounts for these investments as preferred equity investments in its consolidated balance
sheets, and it earns a fixed return on these investments which is included within income from preferred equity investments in its consolidated
statements of operations and comprehensive income. AFS debt securities are carried at fair value in the Company’s consolidated balance
sheets, and any unrealized gains or losses on AFS debt securities are reported as a component of accumulated other comprehensive income
in its consolidated balance sheets, and as a component of other comprehensive income in its consolidated statements of operations and
comprehensive income. The Company evaluates the collectability of each preferred equity investment and estimates a provision for credit
loss, as applicable. Refer to the Current Expected Credit Losses (“CECL”) section of this Note for further information regarding
CECL and the Company