Yes, just as fine and dandy as any other village in the world. The Ottomans specifically said "come, all peoples, come settle this land" and nobody has changed the law since (one mandate that didn't and two occupations that can not). All talk of "it's illegal" either do not mention any law being broken, or grossly misinterpret laws that are applied with the correct interpretation in other geographic places.
There is much noise me about the settlements, but after a year and a half of researching this I come up empty searching for any solid arguments against them.