Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 102

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 102
---
 Preferred Stock to fund future investments and for
other general corporate and working capital purposes. However, any such offerings will not be conditioned upon the closing of definitive
agreements to acquire or invest in any properties. We will have broad discretion in the application of the net proceeds from such offerings,
and holders of our Series A Preferred Stock will not have the opportunity as part of their investment decision to assess whether
the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net
proceeds from such offerings, their ultimate use may vary substantially from their currently intended use, and result in investments that
are not accretive to our results from operations.

If we are required to make payments under any “bad boy” carve-out guaranties, recourse guaranties, and completion guaranties that we may provide in connection with certain mortgages and related loans in connection with an event that constitutes a Change of Control, our business and financial results could be materially adversely affected.

In
causing our subsidiaries to obtain certain nonrecourse loans, we may provide standard carve-out guaranties. These guaranties are generally
only applicable if and when the borrower directly, or indirectly through agreement with an affiliate, joint venture partner or other third
party, voluntarily files a bankruptcy or similar liquidation or reorganization action or takes other actions that are fraudulent or improper
(commonly referred to as “bad boy” guaranties). We also may enter into recourse guaranties with respect to future mortgages,
or provide credit support to development projects through completion guaranties, which also could increase risk of repayment. In some
circumstances, pursuant to guarantees to which we are a party or that we may enter into in the future, our obligations pursuant to such
“bad boy” carve-out guaranties and other guaranties may be triggered by a Change of Control, because, among other things,
such an event may result indirectly in a change of control of the applicable borrower. Because a Change of Control while any Series A
Preferred Stock is outstanding also triggers a right of redemption for cash by the holders thereof, the effect of a Change of Control
could negatively impact our liquidity and overall financial condition, and could negatively impact the ability of holders of shares of
our Series A Preferred Stock to receive dividends or other amounts on their shares of Series A Preferred Stock.

There is a risk of delay in our redemption of Series A Preferred Stock and we may fail to redeem such securities as required