Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 165

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 165
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 the investment whether (i) the entity is a VIE, and (ii) we are the primary
beneficiary of the VIE. If it was determined that an entity in which we hold an interest qualified as a VIE and we are the primary beneficiary,
the entity would be consolidated.

If,
after consideration of the VIE accounting literature, we have determined that an entity is not a VIE, we assess the need for consolidation
under all other provisions of ASC 810. These provisions provide for consolidation of majority-owned entities through a majority voting
interest held by the company providing control.

In
assessing whether we are in control of and requiring consolidation of the limited liability company and partnership venture structures,
we evaluate the respective rights and privileges afforded each member or partner (collectively referred to as “member”). Our
member would not be deemed to control the entity if any of the other members has either (i) substantive kickout rights providing
the ability to dissolve (liquidate) the entity or otherwise remove the managing member or general partner without cause or (ii) substantive
participating rights in the entity. Substantive participating rights (whether granted by contract or law) provide for the ability to effectively
participate in significant decisions of the entity that would be expected to be made in the ordinary course of business.

We
analyze each investment that involves real estate acquisition, development, and construction to consider whether the investment qualifies
as an investment in a real estate acquisition, development, and construction arrangement. We have evaluated our real estate investments
as required by ASC 310-10 Receivables and concluded that no investments are considered an investment
in a real estate acquisition, development, or construction arrangement. As such, we next evaluate if these investments are considered
a security under ASC 320 Investments – Debt Securities.

For
investments that meet the criteria of a security under ASC 320 Investments – Debt Securities,
we classify each investment as an available-for-sale (“AFS”) debt security as we do not have the positive intent to hold all
investments to maturity. We account for these investments as preferred equity investments in our consolidated balance sheets, and we earn
a fixed return on these investments which is included within income from preferred equity investments in our consolidated statements of
operations and comprehensive income. AFS debt securities are carried at fair value in our consolidated balance sheets, and any unrealized
gains or losses on AFS debt securities are reported as a component of accumulated other comprehensive income in our consolidated