The concept screams "another reality show with a proposed new angle".
I'm extremely skeptical of anything being live. It is mandatory that all broadcasters (radio and television) have a minimum 7 second delay (the duration may vary from country to country) to counteract any unsuitable material being broadcast. Additionally, shows which are being recorded live in front of a studio audience and being promoted as a live show is very much an edited show.
There have been some brilliant factual / docu-series the UK have produced namely The Family, One Born Every Minute and The Hotel. The format of this show sounds very similar to The Hotel which Dragonfly Productions produced for Channel 4, only with a comedic slant.
I'd be interested to see the workings of this show format particularly as it's being touted as being a live sitcom. Comedy and sitcoms in particular are VERY HEAVILY scripted and EDITED to ensure the sitcom beats shine through.
I would love to see any world wide format being successful (after all I work in the industry) but this does sound like a beat up that would involve a not so live element to this production.