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Explanation: 'Papers' must stands for newspapers. 'Commmunity' as I understand it refers to the people of a district considered collectively as in the following example: they are preparing prisoners for life back in the community.
Hence I think 'community papers' are newspapers that are distributed among inhabitants of a certain district or area.
Does it fit in your context?
New Oxford Dictionary of English
cbosseaux Native speaker of: French PRO pts in pair: 14