Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 84

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 84
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 future investments
and for other general corporate and working capital purposes. However, the offering will not be conditioned upon the closing of definitive
agreements to acquire or invest in any properties. We will have broad discretion in the application of the net proceeds from this offering,
and holders of our Series A Redeemable Preferred Stock will not have the opportunity as part of their investment decision to assess
whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of
the net proceeds from this offering, their ultimate use may vary substantially from their currently intended use, and result in investments
that are not accretive to our results from operations.

If we are required to make payments under any “bad boy” carve-out guaranties, recourse guaranties, and completion guaranties that we may provide in connection with certain mortgages and related loans in connection with an event that constitutes a Change of Control, our business and financial results could be materially adversely affected.

In
causing our subsidiaries to obtain certain nonrecourse loans, we may provide standard carve-out guaranties. These guaranties are generally
only applicable if and when the borrower directly, or indirectly through agreement with an affiliate, joint venture partner or other third
party, voluntarily files a bankruptcy or similar liquidation or reorganization action or takes other actions that are fraudulent or improper
(commonly referred to as “bad boy” guaranties). We also may enter into recourse guaranties with respect to future mortgages,
or provide credit support to development projects through completion guaranties, which also could increase risk of repayment. In some
circumstances, pursuant to guarantees to which we are a party or that we may enter into in the future, our obligations pursuant to such
“bad boy” carve-out guaranties and other guaranties may be triggered by a Change of Control, because, among other things,
such an event may result indirectly in a change of control of the applicable borrower. Because a Change of Control while any Series A
Redeemable Preferred Stock is outstanding also triggers a right of redemption for cash by the holders thereof, the effect of a Change
of Control could negatively impact our liquidity and overall financial condition, and could negatively impact the ability of holders of
shares of our Series A Redeemable Preferred Stock to receive dividends or other amounts on their shares of Series A Redeemable
Preferred Stock.

There is a risk of delay in our redemption of Series A Redeemable Preferred Stock