Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 240

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 240
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 the exclusion from the definition
of “investment company” provided by Section 3(c)(5)(C) of the Investment Company Act. Section 3(c)(5)(C), as
interpreted by the staff of the SEC, requires our subsidiaries to invest at least 55% of its portfolio in “mortgage and other liens
on and interests in real estate,” which we refer to as “qualifying real estate assets” and maintain at least 80% of
its assets in qualifying real estate assets or other real estate-related assets. The remaining 20% of the portfolio can consist of miscellaneous
assets.

For purposes of the exclusions
provided by Sections 3(c)(5)(C), we will classify the investments made by our subsidiaries based on no-action letters issued by the
SEC staff and other SEC interpretive guidance.

Consistent with guidance issued
by the SEC, we will treat our subsidiaries’ joint venture investments as qualifying assets that come within the 55% basket only
if we have the right to approve major decisions affecting the joint venture; otherwise, they will be classified as real-estate related
assets.

In the event that we, or our
operating partnership, were to acquire assets that could make either entity fall within the definition of investment company under Section 3(a)(1) of
the Investment Company Act, we believe that we would still qualify for an exclusion from registration pursuant to Section 3(c)(6).
Section 3(c)(6) excludes from the definition of investment company any company primarily engaged, directly or through majority
owned subsidiaries, in one or more of certain specified businesses. These specified businesses include the business described in Section 3(c)(5)(C) of
the Investment Company Act. It also excludes from the definition of investment company any company primarily engaged, directly or through
majority owned subsidiaries, in one or more of such specified businesses from which at least 25% of such company’s gross income
during its last fiscal year is derived, together with any additional business or businesses other than investing, reinvesting, owning,
holding, or trading in securities. Although the SEC staff has issued little interpretive guidance with respect to Section 3(c)(6),
we believe that we and our operating partnership may rely on Section 3(c)(6) if 55% of the assets of our operating partnership
consist of, and at least 55% of the income of our operating partnership is derived from, qualifying real estate investment assets owned
by