There is definitely plenty of opportunity for you to work closely with the screenwriters and while it's encouraged, it's not required. I believe screenwriters have an opportunity to direct their work that first semester, and are known to reach out to production MFAs for help. Similarly, MFA production students will take a screenwriting course their first semester and often choose to direct the short screenplays they develop in that course. It's really a supportive environment. Screenwriters and MFA production also share a film History course second semester with Dr. Charles Ramirez-Berg (he's great).
Austin is great but traffic is horrible. To that point, I do not recommend living farther than you can bike to campus (and I definitely recommend a bike, it's quite common here). You'll be on campus a LOT your first year, so the closer you live the easier it will be for you. Hyde Park is a nice and common area students live, but anything in the area near campus will do. No need to worry about crime etc. Apartments are older, but you'll get over it. You won't be home enough for it to matter. Lol.