Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 61

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 61
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 forth in Section 3(c)(1) or Section 3(c)(7) of the Investment
Company Act. We believe that we, our Operating Partnership and most of the subsidiaries of our Operating Partnership will not fall within
this definition of investment company as we invest primarily in real property, through our 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.

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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.

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