Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 187

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 187
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 Investment
Company Act further defines voting securities as any security presently entitling the owner or holder thereof to vote for the election
of directors of a company. We treat companies in which we own at least 50% of the outstanding voting securities as majority-owned subsidiaries
for purposes of the 40% test. We have not requested the SEC to approve our treatment of any company as a majority-owned subsidiary and
the SEC has not done so. If the SEC were to disagree with our treatment of one or more companies as majority-owned subsidiaries, we might
need to adjust our strategy and our assets in order to continue to pass the 40% test. Any such adjustment in our strategy could have
a material adverse effect on us.

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We may in the future organize
special purpose subsidiaries of the Operating Partnership that will rely on Section 3(c)(7) for their Investment Company Act
exemption and, therefore, the Operating Partnership’s interest in each of these subsidiaries would constitute an “investment
security” for purposes of determining whether the Operating Partnership satisfies the 40% test. However, we expect that most of
our other majority-owned subsidiaries will not meet the definition of investment company or rely on exemptions under either Section 3(c)(1) or
Section 3(c)(7) of the Investment Company Act. Consequently, we expect that our interests in these subsidiaries (which we expect
will constitute more than 60% of our assets on an unconsolidated basis) will not constitute investment securities. Consequently, we expect
to be able to conduct our operations so that we are not required to register as an investment company under the Investment Company Act.

One or more of our current
or to-be-formed subsidiaries may seek to qualify for an exemption from registration as an investment company under the Investment Company
Act pursuant to Section 3(c)(5)(C) of the Investment Company Act, which is available for entities “primarily engaged
in the business of purchasing or otherwise acquiring mortgages and other liens on and interests in real estate.” This exemption,
as interpreted by the staff of the SEC, generally requires that at least 55% of a subsidiary’s portfolio must be comprised of “qualifying
interests” and an additional 25% of the subsidiary’s portfolio be comprised of real estate-related interests, although this
percentage may be reduced to the extent that more than 55% of the subsidiary’s assets are comprised of qualifying interests (as
such terms have been interpreted