Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 50

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 50
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 the property for the rent previously received. We may be unable to sell an unoccupied property
without incurring a loss. These events and others could cause us to reduce any amount of distributions we plan to make to stockholders
and may also cause the value of your investment to decline.

Our operating results and distributable cash flow depend on our ability to generate revenue from leasing our properties to tenants on terms favorable to us.

Our operating results depend,
in large part, on revenues derived from leasing our residential properties. We are subject to the credit risk of our tenants, and to
the extent our tenants default on their leases or fail to make their required rental payments we may suffer a decrease in our revenue.
In addition, if a tenant does not fully pay its rent, we may not be able to enforce our rights as landlord without delays and we may
incur substantial legal costs. We are also subject to the risk that, upon the expiration of leases, leases may not be renewed, the properties
may not be re-leased or the terms of renewal or re-leasing (including the cost of required renovations or concessions to tenants) may
be less favorable to us than current lease terms. If vacancies continue for a long period of time, we may suffer reduced revenues resulting
in decreased distributions to our stockholders. In addition, the resale value of such affected properties could be diminished. Further,
costs associated with real estate investment, such as real estate taxes and maintenance costs, generally are not reduced when circumstances
cause a reduction in revenue. These events would cause a significant decrease in net revenues and could cause us to reduce the amount
we distribute to our stockholders.

As the owner of real property, we could become subject to liability for asbestos-containing building materials in the buildings on our properties.

Some of our properties may
contain asbestos-containing materials. Environmental laws typically require that owners or operators of buildings with asbestos-containing
building materials properly manage and maintain these materials, adequately inform or train those who may come in contact with asbestos
and undertake special precautions, including removal or other abatement, in the event that asbestos is disturbed during building renovation
or demolition. These laws may impose fines and penalties on building owners or operators for failure to comply with these requirements.
In addition, third parties may be entitled to seek recovery from owners or operators for personal injury associated with exposure to
asbestos-containing building materials.

In addition, many insurance
carriers are excluding asbestos-related claims from standard policies, pricing asbestos endorsements at prohibitively high rates or adding