Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 238

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 238
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 the fair market value of our real estate investments as appropriate. For purposes of calculating our leverage, we include
our consolidated real estate investments, include our preferred equity and loan investments at cost, include assets we have classified
as held for sale, and include any joint venture level indebtedness in our total indebtedness.

Our board of directors will
have the authority to change our financing policies at any time and without stockholder approval. If our board of directors changes our
policies regarding our use of leverage, we expect that it will consider many factors, including the lending standards of lenders in connection
with the financing of residential properties, the leverage ratios of publicly traded REITs with similar investment strategies, the cost
of leverage as compared to expected operating net revenues, and general market conditions.

By operating on a leveraged
basis, we expect to have more funds available for real estate investments and other purposes than if we operated without leverage, which
we believe will allow us to acquire more investments than would otherwise be possible, resulting in a larger and more diversified portfolio.
See “Risk Factors—Risks Related to Our Business, Properties and Industry—High levels of debt or increases in interest
rates could increase the amount of any future loan payments, which could reduce the cash available for distribution to stockholders”
for more information about the risks related to operating on a leveraged basis.

Policies Relating to the Investment Company Act

We intend to conduct our operations
so that neither we, nor our operating partnership nor the subsidiaries of our operating partnership are required to register as investment
companies under the Investment Company Act.

Section 3(a)(1)(A) of
the Investment Company Act defines an investment company as any issuer that is or holds itself out as being engaged primarily in the business
of investing, reinvesting or trading in securities. Section 3(a)(1)(C) of the Investment Company Act defines an investment company
as any issuer that is engaged or proposes to engage in the business of investing, reinvesting, owning, holding or trading in securities
and owns or proposes to acquire investment securities having a value exceeding 40% of the value of the issuer’s total assets (exclusive
of U.S. government securities and cash items) on an unconsolidated basis, which we refer to as the “40% Test.” Excluded from
the term “investment securities,” among other things, are U.S. government securities and securities issued by majority-owned
subsidiaries that are not themselves investment companies and