Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 36

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 36
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 been focused on the shortage and increases in the cost of residential housing in the U.S. There has been vigorous and continuing
political debate and discussion, in which we participate, with respect to residential housing laws and regulations, with particular focus
on the single-family residential housing industry. Since late 2023, legislation has been introduced that could, if enacted, discourage
or deter the purchase of single-family properties by entities owned or controlled by institutional investors. It is unclear whether these
or similar changes will be enacted and, if enacted, how soon any such changes could take effect. If enacted, such changes could have
an adverse impact on our business and financial results. In addition, there can be no assurance that any other future legislative or
regulatory changes will not be proposed or enacted that could adversely affect our business and financial results.

A significant number of our residential properties are part of HOAs and we and our residents are subject to the rules and regulations of such HOAs, which are subject to change and which may be arbitrary or restrictive, and violations of such rules may subject us to additional fees and penalties and litigation with such HOAs, which would be costly.

A significant number of our
properties are located within HOAs, which are private entities that regulate the activities of owners and occupants of, and levy assessments
on, properties in a residential subdivision. The HOAs in which we own our properties may have enacted or may from time to time enact
onerous or arbitrary rules that restrict our ability to restore, market, lease, or operate our properties in accordance with our
investment strategy, or require us to restore or maintain such properties at standards or costs that are in excess of our planned budgets.
Some HOAs impose limits on the number of property owners who may lease their properties, which, if met or exceeded, would cause us to
incur additional costs to sell the property and opportunity costs from lost rental revenue. Furthermore, we may have residents who violate
HOA rules and incur fines for which we may be liable as the property owner and for which we may not be able to obtain reimbursement
from the resident. Additionally, the governing bodies of the HOAs in which we own property may not make important disclosures about the
properties or may block our access to HOA records, initiate litigation, restrict our ability to sell our properties, impose assessments,
or arbitrarily change the HOA rules. We may be unaware of or unable to review or comply with HOA rules before purchasing a property,
and any such excessively restrictive or