Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 365

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 365
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 product or services
other than the investment of capital. The term “operating company” includes, among other things, a “real estate operating
company” or a REOC. In general, an entity may qualify as a REOC if: (1) at least 50% of its assets valued at cost (other than
short-term investments pending long-term commitment or distribution to investors) are invested in real estate which is managed or developed
and with respect to which the entity has the right to substantially participate directly in the management or development activities,
and (2) such entity is engaged directly in real estate management or development activities in the ordinary course of its business.
It is unclear whether we qualify as a REOC for purposes of the DOL Plan Asset Regulations and at this time we do not intend to rely on
that exception.

Plan Asset Consequences

If our assets were deemed
to be “plan assets” under ERISA, this would result, among other things, in (i) the application of the prudence and other
fiduciary responsibility standards of ERISA to investments made by us, and (ii) the possibility that certain transactions in which
we might seek to engage could constitute “prohibited transactions” under ERISA and the Code.

Representation

Accordingly, by acceptance
of the shares of our Series A Redeemable Preferred Stock each purchaser or subsequent transferee of such shares of Series A
Redeemable Preferred Stock will be deemed to have represented and warranted either that (i) no portion of such purchaser’s
or transferee’s assets used to acquire such shares constitutes assets of any benefit plan investor or (ii) the purchase of
our Series A Redeemable Preferred Stock by such purchaser or transferee will not constitute a non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code or similar violation under any applicable Similar Laws. Each purchaser or subsequent
transferee of our shares of Series A Redeemable Preferred Stock also will be deemed to have represented or warranted that the shares
will not be transferred to any benefit plan investor or Controlling Person until each outstanding series and class of our capital stock
qualifies as a “publicly-offered security” or we qualify for another exception to the DOL Plan Asset Regulations (other than
the exception for satisfying the insignificant participation test).

The foregoing discussion is
general in nature, is not intended to be all-inclusive, and is based on laws in effect on the date of this