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I've never really heard of this specific term before, nor have I heard of a similar concept outside of NPHC or other cultural organizations.
A "city-wide" chapter (or county-wide) is a chapter consisting of several schools in one area that do not or cannot support their own chapter on their own. A good example of a city-wide chapter is Omicron Pi Chapter of Alpha Kappa Alpha in DC - Georgetown U., Catholic University, and Trinity University.
Core chapters (called different things by different orgs) are chapters at several schools but are not city wide. There are chapters of Delta Sigma Theta like this in DC - one is at American and Georgetown, the other is as Catholic and Trinity.
A satellite chapter has a different connotation for me -- it sounds like one chapter having a branch at another university, functioning as two entities. Is this what you mean?
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