Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 180

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 180
---
 adjustment in our strategy could have a
material adverse effect on us.

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 by the staff of the SEC under the Investment Company Act), and no more than 20% may be comprised of assets
that are neither qualifying interests nor real estate-related assets. Qualifying Interests for this purpose include mortgage loans and
other assets such as certain “B” notes and tier one mezzanine loans, which the SEC staff in various no-action letters has
determined are the functional equivalent of mortgage loans for the purposes of the Investment Company Act. We intend to treat as real
estate-related assets any securities of companies primarily engaged in real estate businesses that are not within the scope of SEC positions
and/or interpretations regarding qualifying interests and that are not, themselves, indirect wholly-owned subsidiaries of