Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 363

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 363
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 penalties and liabilities
under ERISA and the Code.

Whether or not our underlying
assets are deemed to include “plan assets,” as described below, the acquisition and/or holding of shares of our Series A
Redeemable Preferred Stock by an ERISA Plan with respect to which we or the initial purchaser is considered a party in interest or a disqualified
person may constitute or result in a direct or indirect prohibited transaction under Section 406 of ERISA and/or Section 4975
of the Code, unless the investment is acquired and is held in accordance with an applicable statutory, class or individual prohibited
transaction exemption. In this regard, the Department of Labor (the “DOL”) has issued prohibited transaction class exemptions,
or “PTCEs,” that may apply to the acquisition and holding of our Series A Redeemable Preferred Stock. These class exemptions
include, without limitation, PTCE 84-14 relating to transactions determined by independent qualified professional asset managers,
PTCE 90-1 relating to insurance company pooled separate accounts, PTCE 91-38 relating to bank collective investment funds, PTCE 95-60
relating to life insurance company general accounts and PTCE 96-23 relating to transactions determined by in-house asset managers.
In addition, Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code provide an exemption from the prohibited transaction
provisions of ERISA and the Code for certain transactions, provided that neither the issuer of the securities nor any of its affiliates
(directly or indirectly) have or exercise any discretionary authority or control, or render any investment advice, with respect to the
assets of any ERISA Plan involved in the transaction, and provided further that the ERISA Plan pays no more than adequate consideration
in connection with the transaction. There can be no assurance that all of the conditions of any such exemptions will be satisfied.

Plan Asset Issues

The DOL Plan Asset Regulations,
promulgated under ERISA by the DOL, generally provide that when an ERISA Plan acquires an equity interest in an entity that is neither
a “publicly-offered security” nor a security issued by an investment company registered under the Investment Company Act,
the ERISA Plan’s assets include both the equity interest and an undivided interest in each of the underlying assets of the entity
unless it is established that either: (1) less than 25% of the total value of each class of equity interest in the entity is held