Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 53

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 53
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 an unconsolidated basis, which
we refer to as the 40% test. Excluded from the term “investment securities,” among other things, are U.S. government securities
and securities issued by majority owned subsidiaries that are not themselves investment companies and are not relying on the exception
from the definition of investment company set forth in Section 3(c)(1) or Section 3(c)(7) of the Investment Company
Act. We believe that we, our Operating Partnership and most of the subsidiaries of our Operating Partnership will not fall within this
definition of investment company as we invest primarily in real property, through our wholly or majority owned subsidiaries, the majority
of which we expect to have at least 60% of their assets in real property or in entities that they manage or co-manage that own real property.
Both we and our Operating Partnership intend to conduct our operations so that they comply with the 40% test. We will monitor our holdings
to ensure continuing and ongoing compliance with this test.

In the event that the value
of investment securities held by the subsidiaries of our Operating Partnership were to exceed 40%, we expect our subsidiaries to be able
to rely on the exclusion from the definition of “investment company” provided by Section 3(c)(5)(C) of the Investment
Company Act. Section 3(c)(5)(C), as interpreted by the staff of the SEC, requires each of our subsidiaries relying on this exception
to invest at least 55% of its portfolio in “mortgage and other liens on and interests in real estate,” which we refer to as
“qualifying real estate assets” and maintain at least 70% to 90% of its assets in qualifying real estate assets or other real
estate-related assets. The remaining 20% of the portfolio can consist of miscellaneous assets.

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What we buy and sell is therefore
limited to these criteria. How we determine to classify our assets for purposes of the Investment Company Act will be based in large measure
upon no-action letters issued by the SEC staff in the past and other SEC interpretive guidance. These no-action positions were issued
in accordance with factual situations that may be substantially different from the factual situations we may face, and a number of these
no-action positions were issued more than ten years ago. Pursuant to this guidance, and depending on the characteristics of the specific
investments, certain joint venture investments may not constitute qualifying real estate assets and therefore