Does it say somwhere the tax cuts are for low income oeners only?
Not that I know of, but that is beside the point as it's not what you originally suggested. Restricting the tax cuts to low-income people would be a much more reasonable idea.
If you can’t afford to own a house (or car, or anything else) you’ll have to sell it.
From what you suggested, you want to actively price people out of their houses. So non-rich people in rural areas etc won't be able to keep their homes anymore and have to rent. Their houses will either get bought by rich people or real estate companies who can afford to do the renovations or they'll be left abandoned. People who are already rich can afford the renovations and won't be affected by the penalties. Is that really a desirable outcome to you?
To give a concrete example, a policy like you suggested might make my mom homeless. She's not rich, my parents were both social workers and paying off the house took decades. The house is from the 1920s, so it needs a lot of renovations to be up to modern standards. Currently, she can slowly save up some money and do them one at a time. You'd place an additional financial burden on her, which would make her unable to save money for the renovations and possibly cause her to lose her house.
The problem is that a large portion of those people you talk about aren't renovating because they can't. Renovation already makes financial sense in many cases, but it requires a huge initial investment. You think for example an older retiree can just take out a loan? Haha, no. Fires, floods etc leave many people destitute unless they have a good insurance, which wouldn't apply to this situation.
You keep arguing against the proposal of incentives, which is fair enough. I can understand the argument that you don't want to finance people's private property. But what I take issue with is your idea of increasing the financial burden on those people with increased taxes and fines. I don't think you've presented a good argument as to how this would improve the situation in any way.