Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 163

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 163
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Accounting Standards Codification (“ASC”) Topic 810: Consolidation and, if so, whether we are the primary beneficiary
requiring consolidation of the entity. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities
without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial
interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that
most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits
from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other
financial interests in a VIE that change in value with changes in the fair value of the VIE’s net assets. We continuously re-assess
at each level of 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.

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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