Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 66

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 66
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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, have sought to wind down Fannie Mae and Freddie Mac. Any decision by the government to eliminate or downscale Fannie Mae or Freddie Mac, to reduce their acquisitions or guarantees of residential real estate mortgage loans, or to reduce government support for residential housing more generally