Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 41

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 41
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, and local legislation and regulation based on concerns about climate change could result in increased
capital expenditures on our existing properties (for example, to improve their energy efficiency and/or resistance to inclement weather)
without a corresponding increase in revenue, resulting in adverse impacts to our results of operations.

Eminent domain could lead to material losses on our investments in our properties.

Governmental authorities may
exercise eminent domain to acquire the land on which our properties are built in order to build roads and other infrastructure. Any such
exercise of eminent domain would allow us to recover 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.

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Furthermore, state and local
governmental agencies may introduce rent control laws or other regulations that