Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 34

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 34
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 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 residential properties sector.

Our investments in real estate
assets are and will continue to be concentrated in our markets and in the residential properties sector of the real estate industry. A
downturn or slowdown in the rental demand for housing caused by adverse economic, regulatory, or environmental conditions, or other events,
in our markets may have a greater impact on the value of our properties or our operating results than if we had more fully diversified
our investments. We believe that there are seasonal fluctuations in rental demand with demand higher in the spring and summer than in
the late fall and winter. Such seasonal fluctuations may impact our operating results. Any future outbreaks of infectious disease, which
may include COVID-19 or a future pandemic, could also result in demand for residential rental properties decreasing substantially and/or
occupancy decreasing materially. See “—Our business, results of operations, financial condition, and cash flows may be adversely
affected by pandemics and outbreaks of infectious disease, which may include COVID-19.”

In addition to general, regional,
national, and international economic conditions, our operating performance will be impacted by the economic conditions in our