Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 242

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 242
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 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. Accordingly,
under Section 3(a)(1) of the Investment Company Act, in relevant part, a company is not deemed to be an “investment company”
if: (i) it neither is, nor holds itself out as being, engaged primarily, nor proposes to engage primarily, in the business of investing,
reinvesting or trading in securities; and (ii) it neither is engaged nor proposes to engage in the business of investing, reinvesting,
owning, holding or trading in securities and does not own or propose to acquire “investment securities” having a value exceeding
40% of the value of its total assets on an unconsolidated basis. We believe that we, our operating partnership and most of the subsidiaries
of our operating partnership will not fall within either definition of investment company as we intend to invest primarily in real property
through our wholly or majority owned subsidiaries, the majority of which we expect will have at least 60% of their assets in real property
or in entities that they manage or co-manage that own real property. As these subsidiaries would be investing either solely or primarily
in real property, they would not be within the definition of “investment company” under Section 3(a)(1) of the
Investment Company Act. We are organized as a holding company that conducts its business primarily through the operating partnership,
which in turn is a holding company conducting its business through its subsidiaries, 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 addition, we believe neither we nor our operating partnership will be considered an investment company under Section 3(a)(1)(A) of
the 1940 Act because neither we nor our operating partnership will engage primarily or hold ourself out as being engaged primarily in
the business of investing, reinvesting or trading in securities. Rather, through the operating partnership’s wholly-owned or majority-owned
subsidiaries, we and the operating partnership will be engaged primarily in the non-investment company businesses of these subsidiaries