Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 57

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 57
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 continuing and ongoing compliance with this test.

In the event that the value
of investment securities held by the subsidiaries of our Operating Partnership were to exceed 40%, we expect our subsidiaries to be able
to rely on 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 each of our subsidiaries relying on this exception
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 70% to 90% 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.

What we buy and sell is therefore
limited to these criteria. How we determine to classify our assets for purposes of the Investment Company Act will be based in large
measure upon no-action letters issued by the SEC staff in the past and other SEC interpretive guidance. These no-action positions were
issued in accordance with factual situations that may be substantially different from the factual situations we may face, and a number
of these no-action positions were issued more than ten years ago. Pursuant to this guidance, and depending on the characteristics
of the specific investments, certain joint venture investments may not constitute qualifying real estate assets and therefore investments
in these types of assets may be limited. No assurance can be given that the SEC will concur with our classification of our assets. Future
revisions to the Investment Company Act or further guidance from the SEC may cause us to lose our exclusion from registration or force
us to re-evaluate our portfolio and our investment strategy. Such changes may prevent us from operating our business successfully.

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
real estate business described in Section 3(c)(5)(C) of the Investment Company Act. It also excludes