Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 153

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 153
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72% is held by holders of limited partnership interest in the Operating Partnership (“OP Units”) and 12.76% is held by holders of the Operating Partnership’s long-term incentive plan units (“LTIP Units”), including 3.09% which are not vested at December 31, 2024.

Real Estate Investments, Preferred Equity Investments and Notes Receivable

We first analyze an investment
to determine if it is a variable interest entity (“VIE”) in accordance with Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”) Topic 810: Consolidation and, if so, whether we are the primary beneficiary
requiring consolidation of the entity. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities
without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial
interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that
most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits
from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other
financial interests in a VIE that change in value with changes in the fair value of the VIE’s net assets. We continuously re-assess
at each level of the investment whether (i) the entity is a VIE, and (ii) we are the primary beneficiary of the VIE. If it
was determined that an entity in which we hold an interest qualified as a VIE and we are the primary beneficiary, the entity would be
consolidated.

If, after consideration
of the VIE accounting literature, we have determined that an entity is not a VIE, we assess 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 we
are in control of and requiring consolidation of the limited liability company and partnership venture structures, we evaluate the respective
rights and privileges afforded each member or partner (collectively referred to as “member”). Our 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