It had a goal of $5000 and claimed to had been created by Holland - but through his lawyer, the stepfather said he had no part in the fund, Stuff reported.
A new mandatory code of practice setting out the duty of pastoral care tertiary education providers owe to students would be urgently introduced.
"The recent death at a student hall of residence in Christchurch exposed the limitations of our current system," Education Minister Chris Hipkins said.
"Halls and hostels charge a premium for their accommodation and parents have every right to expect a high level of care for their sons and daughters."
The law would also create new offences carrying maximum penalties up to $100,000 for breaches that resulted in serious harm or the death of a student.
That fine would be faced by universities, even if they contracted out their accommodation to a third-party provider, Hipkins said.
Pendrous was only found in September when his friend climbed onto the roof at the halls of residence where the teenager lived and looked into his missing friend's room.
Pendrous was in his first year studying e-commerce and was living at Sonoda - a student hall of residence run by Campus Living Villages (CLV).
Investigations are being carried out by former High Court Judge Kit Toogood and police.