Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 56

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 56
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 subsidiaries of our Operating Partnership. We expect that most
of these subsidiaries will be outside the definition of an investment company under Section 3(a)(1) of the Investment Company
Act as they are generally expected to hold at least 60% of their assets in real property or in entities that they manage or co-manage
that own real property. Section 3(a)(1)(A) of the Investment Company Act defines an investment company as any issuer that is
or holds itself out as being engaged primarily in the business of investing, reinvesting or trading in securities. We believe that neither
we nor the Operating Partnership will be considered an investment company under Section 3(a)(1)(A) of the Investment Company
Act because neither we nor the Operating Partnership will engage primarily or hold itself 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 primarily engaged in the non-investment company businesses of these subsidiaries.

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Section 3(a)(1)(C) of
the Investment Company Act defines an investment company as any issuer that is engaged or proposes to engage in the business of investing,
reinvesting, owning, holding or trading in securities and owns or proposes to acquire investment securities having a value exceeding
40% of the value of the issuer’s total assets (exclusive of U.S. government securities and cash items) on 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