Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 50

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 50
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or financial condition.

A change in the United States government policy with regard to Fannie Mae and Freddie Mac could impact our financial condition.

Fannie Mae and Freddie Mac
are a major source of financing for the residential real estate sector. We and other companies in the residential real estate sector
depend frequently on Fannie Mae and Freddie Mac to finance growth by purchasing or guarantying residential real estate loans. Prior initiatives
in the recent past, including proposed legislation, have sought to wind down Fannie Mae and Freddie Mac. Any decision by the government
to eliminate or downscale Fannie Mae or Freddie Mac, to reduce their acquisitions or guarantees of residential real estate mortgage loans,
or to reduce government support for residential housing more generally, may adversely affect interest rates, capital availability, development
of residential communities and our ability to refinance our existing mortgage obligations as they come due and to obtain additional long-term
financing for the acquisition of additional residential communities on favorable terms or at all.

If we are not able to cost-effectively maximize the life of our properties, we may incur greater than anticipated capital expenditure costs, which may adversely affect our ability to make distributions to our stockholders.

While many of the existing
properties we acquire have undergone substantial renovations since they were constructed, older properties may carry certain risks including
unanticipated repair costs associated with older properties, increased maintenance costs as older properties continue to age, and cost
overruns due to the need for special materials and/or fixtures specific to older properties. Although we take a proactive approach to
property preservation, utilizing a preventative maintenance plan, and selective improvements that mitigate the cost impact of maintaining
exterior building features and aging building components, if we are not able to cost-effectively maximize the life of our properties,
we may incur greater than anticipated capital expenditure costs which may adversely affect our financial condition, results of operations
and/or ability to make distributions to our stockholders.

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Any uninsured losses or high insurance premiums will reduce our net income and the amount of our cash distributions to stockholders.

We will attempt to ensure
adequate insurance is obtained to cover significant areas of risk to us as a company and to our properties. However, there are types
of losses at the property level, generally catastrophic in nature, such as losses due to wars, acts of terrorism, earthquakes, floods,
hurricanes, pollution or environmental matters, which are uninsurable or not economically insurable, or may be insured subject to limitations,
such as large deduct