This ability can affect any Hero, including special Heroes that are marked with a star icon (these Heroes cannot normally have an attached Item). The exception is a Hero who already has an Item, a Hero cannot have 2 Items.
This card is rather situational. If their is an unnattached Item card that a player wants, and the player knows there's a Hero in town that will go to their dungeon, that is when this card would be used. And that situation pays off rather nicely when a player can get an Item card that could have potentially ended up in another player's hands. It is recommended to remove this card from the Deck when not playing with Item Cards.