Ok, so I use GIMP. The workflow may be a little different for PS.
Duplicate layer 2x (so 3 of same image)
Make bottom layer invisible
Top layer- invert colors
Gaussian filter (7)
layer mode to dodge
merge top and middle
adjust threshold blackpoint to ~240
Create new layer. Name it Matte Color
Set mode to multiply
paint colors over background in this layer
merge top and middle layers
make bottom layer visible and move to top
set mode to overlay (or play with other modes for desired effect)
filters --> distorts --> newsprint --> cell size ~15