This is a popular workflow I first read about here[1].
This has been the most useful use case for LLMs for me. Actually getting them to implement the spec correctly is the hard part, and you'll have to take the reigns and course correct often.
[1]: https://harper.blog/2025/02/16/my-llm-codegen-workflow-atm/
[1] https://notes.jessmart.in/My+Writings/Pair+Programming+with+...
READMEs per module also help, but it really depends a lot on the model. Gemini will happily traipse all over your codebase at random, gpt-4.1 will do inline imports inside functions because it seems to lack any sort of situational awareness, Claude so far gets things mostly right.