Egil's Saga mentions, that Steinar Önundarson requested the help of Chieftain Einar against Torsteinn Egilsson at Borg.  Snorri Sturluson lived at Stafholt for three years, where he married his daughter Tordis to Torvaldur Vatnsfirdingur.  Oraekja, Snorri's son, lived there until his nephew, Sturla Sighvatsson, drove him into exile.  He returned three years later, after Sturla had been killed, but was rather unpopular in the area.  In 1242, one year after his father, Snorri, was killed in Reykholt, Kolbeinn the young and Gissur Torvaldsson drove him again into exile.  He did not return this time.

Finnur Jonsson's Church story mentions a monastery at Stafholt.  The church at Stafholt posessed great wealth.
Borgarnes