Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 51

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 51
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significant restrictions to this coverage. Because of our difficulty in obtaining specialized coverage at rates that correspond to the
perceived level of risk, we may not obtain insurance for asbestos-related claims. We will continue to evaluate the availability and cost
of additional insurance coverage from the insurance market. If we purchase insurance for asbestos, the cost could have a negative impact
on our results of operations.

Costs associated with addressing indoor air quality issues, moisture infiltration and resulting mold remediation may be costly.

As a general matter, concern
about indoor exposure to mold or other air contaminants has been increasing as such exposure has been alleged to have a variety of adverse
effects on health. Some of our properties may contain microbial matter such as mold and mildew. The terms of our property and general
liability policies generally exclude certain mold-related claims. Should an uninsured loss arise against us, we would be required to
use our funds to resolve the issue, including litigation costs. We can offer no assurance that liabilities resulting from indoor air
quality, moisture infiltration and the presence of or exposure to mold will not have a future impact on our business, results of operations
or financial condition.

A change in the United States government policy with regard to Fannie Mae and Freddie Mac could impact our financial condition.

Fannie Mae and Freddie Mac
are a major source of financing for the residential real estate sector. We and other companies in the residential real estate sector
depend frequently on Fannie Mae and Freddie Mac to finance growth by purchasing or guarantying residential real estate loans. Prior initiatives
in the recent past, including proposed legislation, have sought to wind down Fannie Mae and Freddie Mac. Any decision by the government
to eliminate or downscale Fannie Mae or Freddie Mac, to reduce their acquisitions or guarantees of residential real estate mortgage loans,
or to reduce government support for residential housing more generally, may adversely affect interest rates, capital availability, development
of residential communities and our ability to refinance our existing mortgage obligations as they come due and to obtain additional long-term
financing for the acquisition of additional residential communities on favorable terms or at all.

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If we are not able to cost-effectively maximize the life of our properties, we may incur greater than anticipated capital expenditure costs, which may adversely affect our ability to make distributions to our stockholders.

While many of the existing
properties we acquire have undergone substantial renovations since they were constructed, older properties may carry certain risks including
unanticipated repair costs associated with older