Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 77

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 77
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 to our investment guidelines, our Manager will make all decisions with respect to the management of
our company. Our Manager will depend upon the fees and other compensation that it receives from us in connection with managing our company
to conduct its operations. Any adverse changes in the financial condition of our Manager or its affiliates, or our relationship with our
Manager, could hinder its ability to successfully manage our operations and our portfolio of investments, which would adversely affect
us and our stockholders.

Our board of directors will approve very broad investment guidelines for our Manager and will not approve each investment and financing decision made by our Manager unless required by our investment guidelines.

Our Manager will be authorized
to follow very broad investment guidelines established by our board of directors. Our board of directors will periodically review our
investment guidelines and our portfolio of assets but will not, and will not be required to, review all of our proposed investments, except
in limited circumstances as set forth in our investment guidelines. In addition, in conducting periodic reviews, our board of directors
may rely primarily on information provided to it by our Manager. Furthermore, transactions entered into by our Manager may be costly,
difficult or impossible to unwind by the time they are reviewed by our board of directors. Our Manager will have great latitude within
the broad parameters of our investment guidelines in determining the types and amounts of assets in which to invest on our behalf, including
making investments that may result in returns that are substantially below expectations or result in losses, which would materially and
adversely affect our business and results of operations, or may otherwise not be in the best interests of our stockholders.

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The Management Agreement with our Manager was not negotiated on an arm’s-length basis and may not be as favorable to us as if it had been negotiated with an unaffiliated third party.

Our executive officers, including
one of our five directors, are executives of our Manager or its affiliates. Although the Bluerock Residential board of directors received
an opinion from Robert A. Stanger & Company, Inc. that the terms of the Management Agreement are fair, from a financial
point of view, to us, and after consideration of this opinion and other documents and presentations, the non-management directors authorized
us to enter into the Management Agreement, the Management Agreement was negotiated between related parties and its terms, including fees
payable to our Manager, may not be as favorable to us as if it had been negotiated with an unaffiliated third party. In addition