Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 77

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 77
---
, while we believe we utilize appropriate duplication
and back-up procedures, a significant outage in telecommunications, the internet or at our third-party providers could nonetheless negatively
impact our operations.

Our
third-party service providers are primarily responsible for the security of their own information technology environments and in certain
instances, we rely significantly on third-party service providers to supply and store our sensitive data in a secure manner. All such
third-party vendors face risks relating to cybersecurity similar to ours which could disrupt their businesses and therefore adversely
impact us. While we provide guidance and specific requirements in some cases, we do not directly control any of such parties’ information
technology security operations, or the amount of investment they place in guarding against cybersecurity threats. Accordingly, we are
subject to any flaws in or breaches to their information technology systems or those which they operate for us.

Although
no material incidents have occurred to date, we cannot be certain that our security efforts and measures will be effective or that our
financial results will not be negatively impacted by such an incident should one occur.

Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.

Information
security risks have generally increased in recent years due to the rise in new technologies and the increased sophistication and
activities of perpetrators of cyber-attacks. In the ordinary course of our business we acquire and store sensitive data, including intellectual
property, our proprietary business information and personally identifiable information of our prospective and current residents, our employees
and third-party service providers in our offices and on our networks and website and on third-party vendor networks. We may share some
of this information with vendors who assist us with certain aspects of our business. The secure processing and maintenance of this information
is critical to our operations and business and growth strategies. Despite our security measures and those of our third-party vendors,
our information technology and such infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance
or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed,
lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under
laws that protect the privacy of personal information, regulatory penalties, disruption to our operations and the services we provide
to customers or damage our reputation, and thus could have a material adverse impact on our business, financial condition or results of
operations. In addition, a security breach could require that we expend significant