Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 42

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 42
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 limit our ability to increase rental rates, which may
affect our rental income. Especially in times of recession and economic slowdown, rent control initiatives can acquire significant political
support. If rent controls unexpectedly became applicable to certain of our properties, our revenue from and the value of such properties
could be adversely affected.

Additionally, any future outbreaks
of infectious disease, which may include COVID-19 or a future pandemic, as well as measures taken by governmental authorities and private
actors to limit the spread or mitigate the impact thereof, may interfere with the ability of some of our residents to meet their lease
obligations and make their rent payments on time or at all. In such event, jurisdictions and other local and national authorities may
impose restrictions on our ability to enforce residents’ contractual rental obligations and/or to increase rents. While such measures
would likely enable residents to stay in their homes despite an inability to pay because of financial or other hardship stemming from
such events, they are likely to result in loss of rental income and other property income. See “—Our business, results of
operations, financial condition, and cash flows may be adversely affected by pandemics and outbreaks of infectious disease, which may
include COVID-19.”

We may become a target of legal demands, litigation (including class actions), and negative publicity by tenant and consumer rights organizations, which could directly limit and constrain our operations and may result in significant litigation expenses and reputational harm.

Numerous tenant rights and
consumer rights organizations exist throughout the country and operate in our markets, and we may attract attention from some of these
organizations and become a target of legal demands, litigation, and negative publicity. Many such consumer organizations have become more
active and better funded in connection with mortgage foreclosure-related issues, and with the increased market for residential properties
arising from displaced homeownership, some of these organizations may shift their litigation, lobbying, fundraising, and grassroots organizing
activities to focus on landlord-resident issues. While we intend to conduct our business lawfully and in compliance with applicable landlord-tenant
and consumer laws, such organizations might work in conjunction with trial and pro bono lawyers in one or multiple states to attempt to
bring claims against us on a class action basis for damages or injunctive relief and to seek to publicize our activities in a negative
light. We cannot anticipate what form such legal actions might take or what remedies they may seek.

Additionally, such organizations
may lobby local county and municipal attorneys or state attorneys general to pursue enforcement or