I'm a bit fuzzy on the rules -- it's been some time -- but there had been word of a relaxation of a once-resolute rule. And if I'm not mistaken, the freer rule applies to most, if not all, newly-licensed stations plus applications from existing stations.
What I'd heard was that the main contour of a station no longer had to cover the downtown (the main or original USPO) but a minimum 50% of the community's population * or * its geographical area. Proving this, they could list that city as its COL.
This loosening, of course, would allow more close-spaced or shoehorned stations to claim a more prestigious city for the ID if they wished.
If that's in effect still, a clumsy example would be imagining the whole state of Georgia as a 'city'. The 'downtown', Atlanta, is pretty far north in that city. An applicant from the south of there whose station covered 30,000 square miles of the state already without its main contour going near the 'downtown' of Atlanta could use that rule.
If I read that one correctly. As I said, it's been a few years.
I work casually with some LPFM engineers, being I'm on several radio forums, am retired, and have more spare time. For some reason, the rule that at least 50% of the group running the LPFM had to live within ten miles of the transmitter site evolved. Last I'd heard was that if the transmitter site and the main station base were within a certain minimum distance (ten miles? two miles?) then the members of the ownership group could live anywhere ; there was no residency requirement.