As stated above, the answer is yes, but....
The point costs are high, and you must buy a length of stay pass, even if you're not planning to do the parks everyday.
The hotels you can use are:
Disneyland Hotel, Hotel New York, Newport Bay, and Sequoia Lodge.
At one time (long, long, ago) park passes came with the room when using
DVC points, but that is no longer the case.
I've stayed at Newport Bay, and Hotel Cheyenne. (Hotel Cheyenne and Hotel Santa Fe are not available on points.)
My last trip, I stayed at the nearby Marriott timeshare, Marriott Village d'lle-de-France. You might check into that if you're looking for villa accomodations.