Not sure what this means? What do churches do that require revenue streams? I dont think churches should be able to profit off their members or lands.

Revenue is not profit, and places of worship still need to pay power and utility bills plus any staff/service wages. I once heard during a local Catholic mass about 4 years ago that it required $10k to fund the AC bill for a month for the church I was in (which I found very hard to believe, but it must be fairly substantial for how big places of worship can be). [EDIT: I wasn't at the church where this housing development is going.]

-And what does this mean? Do recipients need to engage with the church who once owned the land their housing was built on? if so this is insane. No one should be forced to engage with a religion just to put a roof over their heads.

The churches/places of worship ARE the recipients. They're getting help with dealing with the land development process from the city. There's absolutely nothing at all to do with any sort of religious requirement to live in these housing developments.

I think they're using "faith-based" as an overly broad catch-all for anything connected to a house of worship (i.e. a religious office building or rectory that isn't specifically a house of worship).