Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 391

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 391
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 Plan
Asset Regulations, a “publicly-offered security” is a security that is (a) “freely transferable,” (b) part
of a class of securities that is “widely held,” and (c) (x) sold to the Plan as part of an offering of securities
to the public pursuant to an effective registration statement under the Securities Act of 1933 and the class of securities to which such
security is a part is registered under the Securities Exchange Act of 1934 within 120 days after the end of the fiscal year of the
issuer during which the offering of such 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.

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