Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 36

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 36
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 increase, our expenses will increase. If we fail to pay any such taxes, the applicable taxing authority
may place a lien on the real property and the real property may be subject to a tax sale.

In addition, a significant
portion of our properties are located within HOAs and we are subject to HOA rules and regulations. HOAs have the power to increase
monthly charges and make assessments for capital improvements and common area repairs and maintenance. Property taxes, HOA fees, and
insurance premiums are subject to significant increases, which can be outside of our control. If the costs associated with property taxes,
HOA fees and assessments, or insurance rise significantly and we are unable to increase rental rates due to rent control laws or other
regulations to offset such increases, our results of operations would be negatively affected.

Our investments are and will continue to be concentrated in our markets and in the residential properties sector of the real estate industry, which exposes us to seasonal fluctuations in rental demand and downturns in our markets or in the residential properties sector.

Our investments in real estate
assets are and will continue to be concentrated in our markets and in the residential properties sector of the real estate industry.
A downturn or slowdown in the rental demand for housing caused by adverse economic, regulatory, or environmental conditions, or other
events, in our markets may have a greater impact on the value of our properties or our operating results than if we had more fully diversified
our investments. We believe that there are seasonal fluctuations in rental demand with demand higher in the spring and summer than in
the late fall and winter. Such seasonal fluctuations may impact our operating results. Any future outbreaks of infectious disease, which
may include COVID-19 or a future pandemic, could also result in demand for residential rental properties decreasing substantially and/or
occupancy decreasing materially. See “—Our business, results of operations, financial condition, and cash flows may be adversely
affected by pandemics and outbreaks of infectious disease, which may include COVID-19.”

In addition to general, regional,
national, and international economic conditions, our operating performance will be impacted by the economic conditions in our markets.
We base a substantial part of our business plan on our belief that property values and operating fundamentals for residential properties
in our markets will continue to improve over the near to intermediate term. However, these markets have experienced substantial economic
downturns in recent years and could experience similar or worse economic downturns in the future. Additionally, a significant outbreak
of infectious disease in the human population