Company: BHM
Filing Date: 2025-05-09
Form Type: 424B3
Source: 0001104659-25-046667
Chunk: 4

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-05-09
Form: 424B3
Chunk 4
---
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. The Company continuously re-assesses at each level of the investment whether (i) the entity is a VIE, and (ii) the
Company is the primary beneficiary of the VIE. If it was determined that an entity in which the Company holds an interest qualified as
a VIE and the Company was the primary beneficiary, the entity would be consolidated.

If,
after consideration of the VIE accounting literature, the Company has determined that an entity is not a VIE, the Company assesses 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 the Company is in control of and requiring consolidation of the limited liability company and partnership venture structures,
the Company evaluates the respective rights and privileges afforded each member or partner (collectively referred to as “member”).
The Company’s 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.

The
Company analyzes 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. The Company has evaluated its 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, the Company next evaluates if these investments
are