Unfortunately, that is true. §73.872(d)(4) of the rules call for non-renewable license terms in the event that the applicants in the MX group default to involuntary time sharing (absent of a settlement agreement). If the group members eventually reach a settlement, even if the hours remain the same, then the licenses will be made, renewable.
LPFM program content/station operations/noncommercial nature
LPFM during the filing window