Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 33

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 33
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 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 arbitrary regulations may cause us to sell such property at a loss, prevent us from leasing such property,
or otherwise reduce our cash flow from such property, which would have an adverse effect on our returns on these properties. Several states
have enacted laws that provide that a lien for unpaid monies owed to an HOA may be senior to our ownership interests and/or the priority
of mortgage liens on properties, which, if not cured, may give rise to events of default under certain of our indebtedness or which otherwise
could have a material adverse impact on us.

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Increasing property taxes, HOA fees, and insurance costs may negatively affect our financial results.

As a result of our substantial
real estate holdings, the cost