Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 34

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 34
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 own property may not make important disclosures about the properties or may
block our access to HOA records, initiate litigation, restrict our ability to sell our properties, impose assessments, or arbitrarily
change the HOA rules. We may be unaware of or unable to review or comply with HOA rules before purchasing a property, and any such
excessively restrictive or arbitrary regulations may cause us to sell such property at a loss, prevent us from leasing such property,
or otherwise reduce our cash flow from such property, which would have an adverse effect on our returns on these properties. Several states
have enacted laws that provide that a lien for unpaid monies owed to an HOA may be senior to our ownership interests and/or the priority
of mortgage liens on properties, which, if not cured, may give rise to events of default under certain of our indebtedness or which otherwise
could have a material adverse impact on us.

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Increasing property taxes, HOA fees, and insurance costs may negatively affect our financial results.

As a result of our substantial
real estate holdings, the cost of property taxes and insuring our properties is a significant component of our expenses. Our properties
are subject to real and personal property taxes that may increase as tax rates change and as the real properties are assessed or reassessed
by taxing authorities. As the owner of our properties, we are ultimately responsible for payment of the taxes to the applicable government
authorities. If real property taxes increase, our expenses will increase. If we fail to pay any such taxes, the applicable taxing authority
may place a lien on the real property and the real property may be subject to a tax sale.

In addition, a significant
portion of our properties are located within HOAs and we are subject to HOA rules and regulations. HOAs have the power to increase
monthly charges and make assessments for capital improvements and common area repairs and maintenance. Property taxes, HOA fees, and insurance
premiums are subject to significant increases, which can be outside of our control. If the costs associated with property taxes, HOA fees
and assessments, or insurance rise significantly and we are unable to increase rental rates due to rent control laws or other regulations
to offset such increases, our results of operations would be negatively affected.

Our investments are and will continue to be concentrated in our markets and in the residential properties sector of the real estate industry, which exposes us to seasonal fluctuations in rental demand and downturns in our markets or in the