Community bonds are financial instruments that allow local governments or organizations to raise funds for community projects. These bonds are typically issued to finance initiatives such as building parks, schools, or infrastructure improvements. Investors purchase these bonds, and in return, they receive interest payments over time, helping to support local development. The funds raised through community bonds are often used to enhance the quality of life for residents. By investing in local projects, community bonds foster a sense of ownership and engagement among residents, encouraging them to participate in the growth and improvement of their neighborhoods.