Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 60

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 60
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 only the fair value of the affected properties. In addition, “fair
value” could be substantially less than the real market value of the property for a number of years, and we could effectively
have no profit potential from properties acquired by the government through eminent domain.

Tenant relief laws, including laws regulating evictions, rent control laws, and other regulations that limit our ability to increase rental rates may negatively impact our rental income and profitability.

As
the landlord of numerous properties, we are involved from time to time in evicting residents who are not paying their rent or who are
otherwise in material violation of the terms of their lease. Eviction activities impose legal and managerial expenses that raise our costs
and expose us to potential negative publicity. The eviction process is typically subject to legal barriers, mandatory “cure”
policies, our internal policies and procedures, and other sources of expense and delay, each of which may delay our ability to gain possession
and stabilize the property. Additionally, state and local landlord-tenant laws may impose legal duties to assist residents in relocating
to new housing, or restrict the landlord’s ability to remove the resident on a timely basis or to recover certain costs or charge
residents for damage residents cause to the landlord’s premises. Because such laws vary by state and locality, we must be familiar
with and take all appropriate steps to comply with all applicable landlord-tenant laws, and need to incur supervisory and legal expenses
to ensure such compliance. To the extent that we do not comply with state or local laws, we may be subjected to civil litigation filed
by individuals, in class actions or actions by state or local law enforcement and our reputation and financial results may suffer. We
may be required to pay our adversaries’ litigation fees and expenses if judgment is entered against us in such litigation or if
we settle such litigation.

Furthermore,
state and local governmental agencies may introduce rent control laws or other regulations that limit our ability to increase rental rates,
which may affect our rental income. Especially in times of recession and economic slowdown, rent control initiatives can acquire significant
political support. If rent controls unexpectedly became applicable to certain of our properties, our revenue from and the value of such
properties could be adversely affected.

Additionally,
any future outbreaks of infectious disease, which may include COVID-19 or a future pandemic, as well as measures taken by governmental
authorities and private actors to limit the spread or mitigate the impact thereof, may interfere with the ability of some of our residents
to meet their