Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 192

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 192
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3-07 on its financial disclosures
and has included the applicable segment disclosures in the notes to its consolidated financial statements.

In
December 2023, the FASB issued Accounting Standards Update No. 2023-09 “Improvements to Income Tax Disclosures (Topic 740)”
(“ASU 2023-09”). The amendments in ASU 2023-09 require additional disclosure with respect to the effective tax rate reconciliation
and information on income taxes paid. The amendments in ASU 2023-09 are effective for the Company for annual reporting periods beginning
after December 15, 2024. The Company continues to evaluate the impact of ASU 2023-09 on its financial disclosures.

In November 2024, the FASB issued Accounting Standards Update No. 2024-03 “Disaggregation of Income Statement Expenses (Subtopic 220-40)” (“ASU 2024-03”). The amendments in ASU 2024-03 require additional disclosure of specified information about certain costs and expenses within the notes to the financial statements. The amendments in ASU 2024-03 are effective for the Company for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of adopting ASU 2024-03 on its financial disclosures.

Current Expected Credit
Losses

Notes Receivable

The
Company estimates provision for credit losses on its loan investments (notes receivable) under CECL. This method is based on expected
credit losses for the life of the investment as of each balance sheet date. The method for calculating the estimate of expected credit
loss considers historical experience and current conditions for similar loans and reasonable and supportable forecasts about the future.

The
Company estimates its provision for credit losses using a collective (pool) approach for investments with similar risk characteristics,
such as collateral and duration of investment. In measuring the CECL provision for investments that share similar characteristics, the
Company applies a default rate to the investments for the remaining loan investment hold period. As the Company does not have a significant
historical population of loss data on its loan investments, the Company’s default rate utilized for CECL is based on an external
historical loss rate for commercial real estate loans.

In
addition to analyzing investments as a pool, the Company performs an individual investment assessment of expected credit losses. If it
is determined that the borrower is experiencing