Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 115

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 115
---
 enhanced reporting and other requirements
under the Exchange Act and Sarbanes-Oxley Act, which will require, among other things, a report by our independent registered public accounting
firm addressing such annual management assessments. These and other obligations will place significant demands on our management, administrative
and operational resources, including accounting and information technology resources. To comply with these requirements, we anticipate
that we will need to further upgrade our systems, including duplicating computer hardware infrastructure, implement additional financial
and management controls, reporting systems and procedures, and hire additional accounting, finance and information technology staff. Our
management and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover, these rules and
regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costlier. If
we are unable to do this in a timely and effective fashion, our ability to comply with our financial reporting requirements and other
rules that apply to reporting companies could be impaired and our business, prospects, financial condition and results of operations
could be harmed.

<div align='center'>51</div>

INVESTMENT COMPANY RISKS

Your investment return may be reduced if we are required to register as an investment company under the Investment Company Act; if we are subject to registration under the Investment Company Act, we will not be able to continue our business.

Neither we, nor our Operating
Partnership, nor any of our subsidiaries intend to register as an investment company under the Investment Company Act. We are organized
as a holding company that conducts its businesses primarily through the Operating Partnership, which in turn is a holding company conducting
its business through its subsidiaries. We expect that our Operating Partnership’s and subsidiaries’ investments in real estate
will represent the substantial majority of our total asset mix, which would not subject us to the Investment Company Act. In order to
maintain an exemption from regulation under the Investment Company Act, we intend to engage, through our Operating Partnership and our
wholly and majority owned subsidiaries, primarily in the business of buying real estate, and qualifying real estate investments must be
made within a year after cash is received by us. If we are unable to invest a significant portion of cash proceeds in properties within
one year of receipt, we may avoid being required to register as an investment company by temporarily investing any unused proceeds in
government securities with low returns, which would reduce the cash available for distribution to stockholders and possibly lower your
returns.

We expect that most of our