Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 114

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 114
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 in the business
of investing, reinvesting or trading in securities. Rather, through the Operating Partnership’s wholly-owned or majority owned subsidiaries,
we and the Operating Partnership will be primarily engaged in the non-investment company businesses of these subsidiaries.

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 are not relying on the exception
from the definition of investment company set forth in Section 3(c)(1) or Section 3(c)(7) of the Investment Company
Act. We believe that we, our Operating Partnership and most of the subsidiaries of our Operating Partnership will not fall within this
definition of investment company as we invest primarily in real property, through our wholly or majority owned subsidiaries, the majority
of which we expect to have at least 60% of their assets in real property or in entities that they manage or co-manage that own real property.
Both we and our Operating Partnership intend to conduct our operations so that they comply with the 40% test. We will monitor our holdings
to ensure 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