Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 58

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 58
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 from the definition of
investment company any company primarily engaged, directly or through majority owned subsidiaries, in one or more of such specified businesses
from which at least 25% of such company’s gross income during its last fiscal year is derived, together with any additional
business or businesses other than investing, reinvesting, owning, holding, or trading in securities. Although the SEC staff has issued
little interpretive guidance with respect to Section 3(c)(6), we believe that we and our Operating Partnership may rely on Section 3(c)(6) if
55% of the assets of our Operating Partnership consist of, and at least 55% of the income of our Operating Partnership is derived from,
qualifying real estate assets owned by wholly owned or majority owned subsidiaries of our Operating Partnership.

In addition, we believe that
the nature of our assets and the sources of our income exclude us from the definition of an investment company pursuant to Rule 3a-1
under the Investment Company Act. Rule 3a-1 provides an exclusion from registration as an investment company if an issuer meets
both an asset and an income test and is not otherwise primarily engaged in an investment company business by, among other things, holding
itself out to the public as such or by taking controlling interests in companies with a view to realizing profits through subsequent
sales of these interests. Generally, an issuer satisfies the asset test of Rule 3a-1 if it has no more than 45% of the value of
its total assets (exclusive of U.S. government securities and cash items) in the form of securities other than interests in majority
owned subsidiaries and companies which it primarily controls. A company satisfies the income test of Rule 3a-1 if it has derived
no more than 45% of its net income after taxes for its last four fiscal quarters combined from securities other than interests in majority
owned subsidiaries and primarily controlled companies through which it engages primarily in a business other than investing in securities.
We believe that as long as we control more than 25% of the voting power, which control is greater than any other person’s, of our
Operating Partnership we may rely on Rule 3a-1.

To ensure that neither we,
nor our Operating Partnership nor subsidiaries are required to register as an investment company, each entity may be unable to sell assets
they would otherwise want to sell and may need to sell assets they would otherwise wish to retain. In addition, we, our Operating Partnership
or our