Possible - yes. But very difficult.
In Photoshop you can transfer color from a different pic to the one you want to alter. So if you have pics with the correct skin tone, hair color, buildings, trees, etc it could theoretically be done. Maybe Paint Shop Pro is capable of this as well.
This technique can be used successfully to correct sections of a color image but, realistically, doing it to the entire photo will likely look contrived and unnatural.
This is just my opinion, but I find that a nicely framed black and white picture hanging in a room full of color can be quite nice. It draws the eye, preserves the drama and, in your case, respects the history. Just a thought.