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In ordinary words.
The government may take a home for a redevelopment project that ends up in private hands.
In legal terms.
The Fifth Amendment requires public use and just compensation. Kelo v. City of New London accepted a qualifying economic-development plan as public use under federal constitutional law.
Where it stops being legal.
State constitutions and statutes may be stricter; takings without lawful public use or just compensation can be challenged.
Legal authority / Start reading
Kelo v. City of New London, 545 U.S. 469 (2005)
Open cited reference ↗General U.S.-focused information. Cases and statutes may have jurisdiction-specific exceptions. This citation may be a general primer; verify the governing primary authority. Not legal advice.