Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 39

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 39
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 that we plan to extensively renovate. We may also acquire properties that we expect to be in good condition only
to discover unforeseen defects and problems that require extensive renovation and capital expenditures. To the extent properties are
leased to existing residents, renovations may be postponed until the resident vacates the premises, and we will pay the costs of renovating.
In addition, from time to time, we may perform ongoing maintenance or make ongoing capital improvements and replacements and perform
significant renovations and repairs that resident deposits and insurance may not cover. Because our portfolio consists of geographically
dispersed properties, our ability to adequately monitor or manage any such renovations or maintenance may be more limited or subject
to greater inefficiencies than if our properties were more geographically concentrated.

Our properties have infrastructure
and appliances of varying ages and conditions. Consequently, we routinely retain independent contractors and trade professionals to perform
physical repair work and are exposed to all of the risks inherent in property renovation and maintenance, including potential cost overruns,
increases in labor and materials costs, delays by contractors in completing work, delays in the timing of receiving necessary work permits,
certificates of occupancy, and poor workmanship. Additionally, containment measures arising from any future outbreaks of infectious disease,
which may include COVID-19 or a future pandemic, may also interfere with the ability of our associates, suppliers, and other business
partners to carry out their assigned tasks or supply materials, services, or funding at ordinary levels of performance relative to the
conduct of our business. 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.” If our assumptions regarding the costs
or timing of renovation and maintenance across our properties prove to be materially inaccurate, our operating results and ability to
make distributions to our stockholders may be adversely affected.

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We have in the past acquired and may from time to time in the future acquire some of our residential properties through the auction process, which could subject us to significant risks that could adversely affect us.

We have in the past acquired
and may from time to time in the future acquire some of our residential properties through the auction process, including auctions of
properties that have been foreclosed upon by third-party lenders. Such auctions may occur simultaneously in a number of markets, including
monthly auctions on the same day of the month in certain markets. As a result, we may only be able to visually inspect