Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 43

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 43
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 to build roads and other infrastructure. Any
such exercise of eminent domain would allow us to recover only the fair value of the affected properties. In addition, “fair value”
could be substantially less than the real market value of the property for a number of years, and we could effectively have no profit
potential from properties acquired by the government through eminent domain.

Tenant relief laws, including laws regulating evictions, rent control laws, and other regulations that limit our ability to increase rental rates may negatively impact our rental income and profitability.

As the landlord of numerous
properties, we are involved from time to time in evicting residents who are not paying their rent or who are otherwise in material violation
of the terms of their lease. Eviction activities impose legal and managerial expenses that raise our costs and expose us to potential
negative publicity. The eviction process is typically subject to legal barriers, mandatory “cure” policies, our internal
policies and procedures, and other sources of expense and delay, each of which may delay our ability to gain possession and stabilize
the property. Additionally, state and local landlord-tenant laws may impose legal duties to assist residents in relocating to new housing,
or restrict the landlord’s ability to remove the resident on a timely basis or to recover certain costs or charge residents for
damage residents cause to the landlord’s premises. Because such laws vary by state and locality, we must be familiar with and take
all appropriate steps to comply with all applicable landlord-tenant laws, and need to incur supervisory and legal expenses to ensure
such compliance. To the extent that we do not comply with state or local laws, we may be subjected to civil litigation filed by individuals,
in class actions or actions by state or local law enforcement and our reputation and financial results may suffer. We may be required
to pay our adversaries’ litigation fees and expenses if judgment is entered against us in such litigation or if we settle such
litigation.

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Furthermore, state and local
governmental agencies may introduce rent control laws or other regulations that limit our ability to increase rental rates, which may
affect our rental income. Especially in times of recession and economic slowdown, rent control initiatives can acquire significant political
support. If rent controls unexpectedly became applicable to certain of our properties, our revenue from and the value of such properties
could be adversely affected.

Additionally, any future
outbreaks of infectious disease, which may include COVID-19 or a future pandemic, as well as measures