Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 41

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 41
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. Our resident
turnover rate and related cost estimates may be less accurate than if we had more operating data upon which to base such estimates. If
the rental rates for our properties decrease or our residents do not renew their leases, our operating results and ability to make distributions
to our stockholders could be adversely affected. Alternatively, to the extent that a lease term exceeds one year, we may lose the opportunity
to raise rents in an appreciating market and be locked into a lower rent until such lease expires.

Climate change may adversely affect our business.

To the extent that significant
changes in the climate occur in areas where our communities are located, we may experience extreme weather and/or changes in precipitation
and temperature, all of which may result in physical damage to, or a decrease in demand for, properties located in these areas or affected
by these conditions. Should the impact of climate change be material in nature, including significant property damage to or destruction
of our properties, or occur for lengthy periods of time, our financial condition or results of operations may be adversely affected. In
addition, changes in federal, state, and local legislation and regulation based on concerns about climate change could result in increased
capital expenditures on our existing properties (for example, to improve their energy efficiency and/or resistance to inclement weather)
without a corresponding increase in revenue, resulting in adverse impacts to our results of operations.

Eminent domain could lead to material losses on our investments in our properties.

Governmental authorities may
exercise eminent domain to acquire the land on which our properties are built in order to build roads and other infrastructure. Any such
exercise of eminent domain would allow us to recover only the fair value of the affected properties. In addition, “fair value”
could be substantially less than the real market value of the property for a number of years, and we could effectively have no profit
potential from properties acquired by the government through eminent domain.

Tenant relief laws, including laws regulating evictions, rent control laws, and other regulations that limit our ability to increase rental rates may negatively impact our rental income and profitability.

As the landlord of numerous
properties, we are involved from time to time in evicting residents who are not paying their rent or who are otherwise in material violation
of the terms of their lease. Eviction activities impose legal and managerial expenses that raise our costs and expose us to potential
negative publicity. The eviction process is typically subject to legal barriers, mandatory “cure” policies, our internal policies
and procedures, and