you need a market and school within the radius as well as a church. the bannies also need to have all 4 food groups available to them. and they need alcohol. NILLA did some blogs on this. seems some bannies will stay un-happy , like if they have a close death before the cemetary is built.
you can check the bannies individually to see how things are progressing.
i always play with more mods, so never do get the happiness effects to work fully.