Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 379

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 379
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 securities to the public has occurred, or (y) is part of a class of securities that is registered
under Section 12 of the Exchange Act. Our Series B Redeemable Preferred Stock will not qualify as a “publicly-offered
security” unless and until such time as we register our Series B Redeemable Preferred Stock under Section 12 of the Exchange
Act.

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For purposes of the “insignificant
participation test,” the DOL Plan Asset Regulations provide that equity participation in an entity by benefit plan investors is
not significant if their aggregate interest is less than 25% of the value of each class of equity securities in the entity, disregarding,
for purposes of such determination, any interests held by persons and their affiliates (other than Controlling Persons), who have discretionary
authority or control with respect to the assets of the entity or who provide investment advice for a fee with respect to such assets.
We do not intend to limit or monitor benefit plan investors’ investments in our Series B Redeemable Preferred Stock and so
there can be no assurance that our Series B Redeemable Preferred Stock will satisfy the “insignificant participation test.”

As noted above, the assets
of a benefit plan investor do not include the underlying assets of the entity when the benefit plan investor acquires an equity interest
in an “operating company.” Under the DOL Plan Asset Regulations, an entity is an “operating company” if it is
primarily engaged, either directly or through a majority-owned subsidiary or subsidiaries, in the production or sale of a product or services
other than the investment of capital. The term “operating company” includes, among other things, a “real estate operating
company” or a REOC. In general, an entity may qualify as a REOC if: (1) at least 50% of its assets valued at cost (other than
short-term investments pending long-term commitment or distribution to investors) are invested in real estate which is managed or developed
and with respect to which the entity has the right to substantially participate directly in the management or development activities,
and (2) such entity is engaged directly in real estate management or development activities in the ordinary course of its business.
It is unclear whether we qualify as a REOC for purposes of the DOL Plan Asset Regulations and at this time we do not intend to rely on
that exception.

Plan Asset Consequences

If our assets were deemed
to be “