[Letterhead of Thacher Proffitt & Wood]




Writer's Direct Dial
(212) 912-7435

                                   June 13, 1997


Dime Community Bancorp, Inc.
209 Havemeyer Street
Brooklyn, New York  11211

            Re:  1996 Stock Option Plan for Outside Directors, Officers and
                 Employees; Recognition and Retention Plan for Outside Officers,
                 Directors and Employees
                 ---------------------------------------------------------------

Dear Sirs:

         We have acted as counsel for Dime Community Bancorp, Inc., a Delaware
corporation ("Corporation"), in connection with the filing of a registration
statement on Form S-8 under the Securities Act of 1933, as amended
("Registration Statement") with respect to 2,036,650 shares of its common stock,
par value $.10 per share ("Shares"), of which 1,454,750 Shares are authorized
but unissued Shares which have been reserved for issuance ("Original Issue
Shares") upon exercise of options granted pursuant to the Dime Community
Bancorp, Inc. 1996 Stock Option Plan for Outside Directors, Officers and
Employees ("Plan"). In rendering the opinion set forth below, we do not express
any opinion concerning law other than the federal law of the United States and
the corporate law of the States of New York and Delaware.

         We have examined originals or copies, certified or otherwise
identified, of such documents, corporate records and other instruments as we
have deemed necessary or advisable for purposes of this opinion. As to matters
of fact, we have examined and relied upon the Plan described above and, where we
have deemed appropriate, representations or certificates of officers of the
Corporation or public officials. We have assumed the authenticity of all
documents submitted to us as originals, the genuineness of all signatures, the
legal capacity of natural persons and the conformity to the originals of all
documents submitted to us as copies.







Dime Community Bancorp, Inc.
June 13, 1997                                                            Page 2.

         Based on the foregoing, we are of the opinion that the Original Issue
Shares which are being registered pursuant to the Registration Statement have
been duly authorized and, when issued and paid for in accordance with the terms
of the Plan, such Original Issue Shares will be validly issued, fully paid and
non-assessable.

         In rendering the opinion set forth above, we have not passed upon and
do not purport to pass upon the application of "doing business" or securities or
"blue-sky" laws of any jurisdiction (except federal securities law).

         This opinion is given solely for the benefit of the Corporation and
purchasers of shares under the Plan, and no other person or entity is entitled
to rely hereon without express written consent.

         We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the references to our Firm's name therein.

                                   Very truly yours,

                                   THACHER PROFFITT & WOOD



                                   By /s/ W. Edward Bright
                                      ----------------------------------------
                                      W. Edward Bright