Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 55

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 55
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 our stockholders.

As the owner of real property, we could become subject to liability for asbestos-containing building materials in the buildings on our properties.

Some of our properties may
contain asbestos-containing materials. Environmental laws typically require that owners or operators of buildings with asbestos-containing
building materials properly manage and maintain these materials, adequately inform or train those who may come in contact with asbestos
and undertake special precautions, including removal or other abatement, in the event that asbestos is disturbed during building renovation
or demolition. These laws may impose fines and penalties on building owners or operators for failure to comply with these requirements.
In addition, third parties may be entitled to seek recovery from owners or operators for personal injury associated with exposure to asbestos-containing
building materials.

In addition, many insurance
carriers are excluding asbestos-related claims from standard policies, pricing asbestos endorsements at prohibitively high rates or adding
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.

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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