Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 72

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 72
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 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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Table of Contents

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 investments in these types of assets may be limited. No assurance can be given that the SEC will concur with our classification
of our assets. Future revisions to the Investment Company Act or further guidance from the SEC may cause us to lose our exclusion from
registration or force us to re-evaluate our portfolio and our investment strategy. Such changes may prevent us from operating our business
successfully.

In
the event that we, or our Operating Partnership, were to acquire assets that could make either entity fall within the definition of investment
company under Section 3(a)(1) of the Investment Company Act, we believe that