Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 241

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 241
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 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.

Even if the value of investment
securities held by our subsidiaries 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 our subsidiaries 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
80% 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.

For purposes of the exclusions
provided by Sections 3(c)(5)(C), we will classify the investments made by our subsidiaries based on no-action letters issued by
the SEC staff and other SEC interpretive guidance.

Consistent with guidance
issued by the SEC, we will treat our subsidiaries’ joint venture investments as qualifying assets that come within the 55% basket
only if we have the right to approve major decisions affecting the joint venture; otherwise, they will be classified as real-estate related
assets.

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