Company: BHM
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001104659-25-077615
Chunk: 29

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 29
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, 2024

2. Summary of significant accounting policies (continued)

Fair Value - Definition and Hierarchy (continued)

The fair value hierarchy is categorized
into three levels based on the inputs as follows:

Level 1 - Unadjusted quoted
prices in active markets for identical assets or liabilities that the Fund has the ability to access.

Level 2 - Inputs, other than
quoted prices included in Level 1, that are observable either directly or indirectly. These inputs may include: (a) quoted prices
for similar assets in active markets; (b) quoted prices for identical or similar assets in markets that are not active; (c) inputs
other than quoted prices that are observable for the asset; or (d) inputs derived principally from or corroborated by observable
market data by correlation or other means.

Level 3 -Inputs that are unobservable
and significant to the entire fair value measurement.

Private investment companies measured
using net asset value as the practical expedient are not categorized within the fair value hierarchy.

The availability of valuation techniques
and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment,
whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular
to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market,
determining fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially
higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment
exercised by the Fund in determining fair value is greatest for investments categorized in Level 3. In some circumstances, the inputs
used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value
measurement is generally categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to
the fair value measurement.

Fair Value – Valuation Techniques and Inputs

The Fund establishes valuation processes
and procedures to ensure that the valuation methodologies for investments that are categorized within Level 3 of the fair value hierarchy
are fair, consistent, and verifiable.

The General Partner oversees the entire
valuation process of the Fund’s Level 3 investments and is responsible for developing the Fund’s written valuation processes
and procedures, conducting periodic reviews of the valuation policies, and evaluating the overall fairness and