You might have to hack your own alternative -- and believe it or not there is a lot of hope for you; I've had a lot of success here in Baltimore by making things, telling everyone I know about them, and also letting everyone in my network know that I want to start a company. Since starting to do that, I've heard from three really smart, really capable people who I could potentially start something with. So my advice is to do everything you can to put yourself into the path of creative people as well as rich people in your area, and not focus so much on conforming to YC's or anyone else's idea of what you need to do to succeed.
New York Angels (<a href="http://newyorkangels.com/)">http://newyorkangels.com/)</a> has a similar application (unlike YC, there's no deadline, and they'll accept an applicant at any time, but they charge a fee).<p>I haven't gone through the process myself, but I saw their pitch at a NYC tech panel a few months ago.
The alternative is to convince YC that proximity isn't the most important thing. (It is <i>an</i> important thing, I understand, but it's not the most important thing.)<p>It'll take a very compelling story.
CRV Quickstart is great if you're a bit further along than the idea stage.<p><a href="http://www.crv.com/AboutCRV/QuickStart.html">http://www.crv.com/AboutCRV/QuickStart.html</a>
My suggestion is to apply and then cross that bridge when you came to it. I am sure if your team is good enough YC will be willing to make some allowances.