Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 52

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 52
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 our properties may have enacted or may
from time to time enact onerous or arbitrary rules that restrict our ability to restore, market, lease, or operate our properties in accordance
with our investment strategy, or require us to restore or maintain such properties at standards or costs that are in excess of our planned
budgets. Some HOAs impose limits on the number of property owners who may lease their properties, which, if met or exceeded, would cause
us to incur additional costs to sell the property and opportunity costs from lost rental revenue. Furthermore, we may have residents who
violate HOA rules and incur fines for which we may be liable as the property owner and for which we may not be able to obtain reimbursement
from the resident. Additionally, the governing bodies of the HOAs in which we 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.

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