Company: BHM
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001104659-25-077615
Chunk: 58

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 58
---
 across various scenarios. Investments in private operating companies are included in Level 3
of the fair value hierarchy.

The Fund values its investment in MC
I&I Pref Opco, LP utilizing the net asset value provided by the underlying private investment fund as a practical expedient. If it
is probable the Fund will sell the investment at an amount different from the net asset valuation, the committee considers other factors
in addition to the net asset valuation in its determination of fair value. As of March 31, 2025 and December 31, 2024, the Fund
valued its investment in MC I&I Pref Opco, LP entirely based on the net asset valuation provided by the underlying investment company
as a practical expedient.

MC I&I Pref Opco, LP shares a valuation
policy with the Fund and values its investments consistent with what is described in this Note 2.

Investment Transactions and Related Investment Income

Investment transactions are accounted
for on a trade-date basis. Realized gains and losses on investment transactions are determined using cost calculated on a specific identification
basis. Interest is recognized on the accrual basis and the collectability of interest receivable is evaluated when making accruals. Distributions
that represent returns of capital in excess of cumulative profits and losses are credited to investment cost rather than investment income.

Income Taxes

The Fund does not record a provision
for U.S. federal, state, or local income taxes because the partners report their share of the Fund’s income or loss on their income
tax returns. The Fund files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states.
Generally, the Fund is subject to income tax examinations by major taxing authorities during the three-year period prior to the period
covered by these consolidated financial statements.

MC Income and Impact REIT, LLC, a consolidated
subsidiary of the Fund, has elected to be treated as a REIT under Sections 856 through 860 of the Code beginning with the tax year ended
December 31, 2025. In general, a company which elects REIT status, distributes at least 90% of its REIT taxable income to its shareholders
in any taxable year, and complies with certain other requirements. It is not subject to federal income taxation to the extent of the income
which it distributes. If it fails to qualify as a REIT in any taxable year, it will be subject to federal income tax at regular